Tambun Indah looking to increase landbank

KUALA LUMPUR: Leading Penang property developer Tambun Indah Land Bhd is finalising the acquisition of two pieces of land in the northern state to add to its current landbank of more than 200 acres while planning to venture into the Klang Valley in the near future.

Tambun Indah managing director Teh Kiak Seng said the group had identified a piece of land in Penang island measuring over four acres with an estimated gross development value (GDV) of RM170 million as well as another piece of land with similar size in the mainland with a much lower GDV of RM8 million.

He said the group hoped the acquisitions could be completed in the next few months.

"We are actually looking at land all the time. It is important to get quality land so that you can be visible and get good return for it," he said during the launch of the group's prospectus for its initial public offering (IPO) on Wednesday, Dec 29.

Teh pointed out that Tambun Indah planned to embark on residential project in the Klang Valley and had viewed potential land for development in areas such Shah Alam and Kajang. He noted the group did not mind if the land was leasehold as preference were for land with "good accessibility" and not situated on hilly grounds.

He added that there was no timframe for its land acquisitions in the Klang Valley as the group in general targeted land with "fast turnover" and was not in favour of purchasing land for long term keeping.

"Mainland Penang is one of the fastest growing districts in Penang due largely to the increase of working class population as a result of rapid industrialisation," added Teh.

Tambun Indah's IPO involved a public issue of 32 million new ordinary shares of 50 sen each comprising of 11.05 million new shares for application by the Malaysian public, another 11.05 million shares for application by eligible directors, employees and business associates as well as 9.9 million new shares for application by investors via placement at an issue price of 70 sen apiece.

The group is also offering to sell 22.1 million ordinary shares of 50 sen each for application by bumiputera investors. It is expected to be listed on the main market of Bursa Malaysia Securities on Jan 18, 2011.