Tadmax’s unit accepts RM30 mil bridging loan for Labuan development project

KUALA LUMPUR (Aug 5): Tadmax Resources Bhd’s wholly-owned subsidiary Ganggarak Development Sdn Bhd (GDSB) had on Aug 5, accepted a Bridging Financing-i facility (BF-i) of RM30 million granted by Malaysia Building Society Bhd, for a period of up to 36 months from the date of the first disbursement of the BF-i Tranche 1.

According to a filing to Bursa Malaysia, Tadmax said the BF-i facility will be used to part finance the development of Phase 1 of Ganggarak Permai development project, comprising two blocks of residential apartments, totalling 520 units.

The project undertaken by GDSB involves development of a parcel of land, measuring 41.5 acres, located in Ganggarak, Wilayah Persekutuan Labuan, with an estimated total gross development value (GDV) of RM611 million.

Tadmax said the project consists of two main components, namely affordable housing apartments and a mixed development comprising a commercial centre cum condominiums.

The affordable housing apartments will have 1,560 units of residential apartments, built over six blocks of 14-storeys each, complete with associated infrastructures, facilities and amenities, and is targeted to generate a total GDV of RM288 million.

The affordable housing apartments are to be carried out in 3 phases, with each phase comprising 520 units of apartments, it said.

The mixed development is to be carried out in Phase 4 separately, at a later stage, with a projected GDV of RM323 million.

Tadmax said: “the facility will not have any effect on the issued and paid-up share capital of TRB, nor the shareholdings of TRB’s substantial shareholders.”

However, Tadmax said, the facility would result in GDSB incurring interest expense. The Facility would be solely used to fund the development of GDSB’s Project, and such interest expenses will be covered by the revenue from the project, it added.

Tadmax said the facility is not expected to have any material effect on the net assets and gearing of group, save for the increase in gearing by 0.15 times computed based on the assumption of full utilization of the RM30 million, via-a-vis the audited equity attributable to the owners of the company of about RM197 million as at Dec 31, 2014.

Tadmax’ share price traded unchanged at 32 sen today, giving it a market capitalisation of RM142.32 million.