Naza TTDI targets RM3b in assets in 5 years, may mull REIT

SHAH ALAM: Naza TTDI Sdn Bhd, the property development arm of the Naza group, may consider launching a real estate investment trust (REIT) if it hits its target of RM3 billion in total investment assets within five years, according to its group managing director SM Faliq SM Nasimuddin.

“I think [our investment asset target of RM3 billion] is quite achievable. Whenever we develop some strategic properties, the group will also look at investing in the retail and office components to get some recurring income,” he told reporters after unveiling the master plan for its TTDI Gateway development in Section 13 here yesterday.

The 38.8-acre (15.7ha) integrated development will be developed over three phases and it features offices, serviced apartments and retail components. The entire project is expected to generate a gross development value of RM2.5 billion and is targeted to be completed by 2020.

“One of the pillars of the group now is to build our asset investments. We own the Naza tower [at KLCC Platinum Park], which is due for completion in the first quarter of 2015.

“And whatever the group develops which we see potential in value, we will invest in that element. Probably five years from now, the group will have a sizeable portfolio of assets to set up a REIT,” said Naza TTDI chairman SM Nasarudin SM Nasimuddin.

The group’s investment assets are currently more than RM1 billion, mostly office and retail units.

On whether the group plans to list on Bursa Malaysia, Nasarudin said there are no plans for now. “It is something we have been talking about for a while. It’s all about timing and value. Probably we as a family will look into it in about two years,” he added.

“There is a lot of competition in the market, [but] I still feel the assets we own are strategically located in very prime areas. So, I think the demand and yield in those prime areas are still there,” said Faliq.

This year, Naza TTDI is confident of meeting its sales target of RM1.5 billion on ongoing projects, including the residential components of TTDI Sentralis and TTDI Alam Impian Shah in Shah Alam; TTDI Dualis in Equine Park, Kuala Lumpur; and TTDI Grove Kajang. In 2013, the group achieved RM1.4 billion in sales.

Faliq (left) and Nasarudin at the unveiling of TTDI Gateway in Shah Alam yesterday.

“We have the right products and right location. If you look at [Naza] TTDI, we don’t aggressively launch projects in many areas. We are focused on what we do.

“We have been developing and launching mid-sized projects, but we always make sure we release the amount of units based on what we think the market can absorb at the time,” said Faliq.

On the development of the RM20 billion KL Metropolis project at Jalan Duta, Kuala Lumpur, Faliq said the group has completed 30% of Matrade Centre, which it hopes to deliver to the government by the first quarter of 2016.

Meanwhile, Naza TTDI will launch the Platinum Park Residences, the second last component of its RM4 billion KLCC Platinum Park development, in September, with a soft launch planned for mid-June. The development of the last component, a hotel, will be announced later.


This article first appeared in The Edge Financial Daily, on April 29, 2014.'