Tender of foreclosed properties under Danaharta receives overwhelming response

KUALA LUMPUR: The ongoing tender of foreclosed properties under Pengurusan Danaharta Nasional Bhd (Danaharta) has received overwhelming response, according to Prokhas Sdn Bhd.

Prokhas, a wholly-owned company of Minister of Finance Inc was set up in 2006 to manage the residual assets of Danaharta. The latter was established on June 20, 1998, to tackle non-performing loans (NPL) during the Asian financial crisis then. The NPL-resolution agency ceased operations on Dec 31, 2005.

Prokhas’ Head of Property Department, Muhammad Solleh Ramli said the tender process currently going on from April 5 to May 4, 2010, has seen more than 350 tender packages sold. The tender exercise by Prokhas involves 114 properties including residential, retail, office, industrial, development, agricultural and commercial. Property news website www.theedgeproperty.com last month reported that the indicative value of properties in the current tender exercises was some RM235 million.

Apart from the tender exercises, the structured sale also included three auctions that were held in Kuala Lumpur, Penang and Johor Bahru. “The auction in Penang was very successful where 17 out of 19 properties were sold to the successful bidders. This is beyond our expectations,” said Muhammad Solleh.

However, the auction in Johor did not receive as good a response as many properties remained unsold. Muhammad Solleh said the unsold properties would be put up for tender in the next structured sale.

“Though some of our properties are abandoned and not prime properties as they are situated in less strategic locations, our structured sale gives a good bargain to buyers with vision to convert these properties into something which can bring more profit in the future,” he said.

The tender packages for the development properties sold received significant response from mainly property players compared with individual investors, he added.

To date, Prokhas has collected RM2.92 billion on behalf of Danaharta and it expects to collect another of RM650 million by end-2011. “The goal here is to convert all residual assets into cash and to maximise recovery as much as possible,” said Prokhas’ Managing Director Fazlur Rahman Ebrahim. “We hope to realise RM3.57 billion in cash collection by end-2011,” he added.

Another two structured sale exercises are being planned for 2010 with more in 2011. For more details on the properties, log into www.prokhas.com.my