DBhd unit gets nod for land buy in Johor

Kuala Lumpur: Damansara Realty Bhd (DBhd)'s associate company, DAC Properties Sdn Bhd, has completed the acquisition of 21.50 hectares (ha) of land for RM130.3 million from Johor Corporation (JCorp), the Johor state investment arm.In a statement here, DBhd said it had received the Economic Planning Unit's approval for the acquisition, which is part of its proposed RM141.5 million settlement agreement with JCorp, allowing it to reduce its net current liabilities and return its balance sheet to health.

The integrated facilities management, project management consultancy and property group added with the completion of the acquisition, it had met almost all its obligations under the settlement agreement with JCorp, and would reduce its net current liabilities by RM132 million.

"The completion will mean a stronger balance sheet for DBhd, slashing its net current liability to RM23 million from RM155 million before," said Group Chief Executive Officer, Brian Iskandar Zulkarim.

Located in Tebrau, Johor Bahru, the land is part of DBhd's 25.5ha Central Park being developed in partnership with Hong Kong-listed Country Garden, within the strategically located Taman Damansara Aliff along the Pasir Gudang Highway.

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"DBhd will still own about 4.04ha within Taman Damasara Aliff after the Central Park is completed.

With this land acquisition and the good progress on Central Park, DBhd is on track to strengthen its property development arm," he said.

Central Park is an integrated township comprising, amongst others, residential homes, commercial shop lots, and amenities with an estimated gross development value of about RM3.5 billion and slated to be completely developed over the next six to eight years.

The settlement comprises two acquisitions of land by DBhd from JCorp for RM141.5 million cash, and a land swap.

As part of its joint-venture with Country Garden Malaysia, DBhd has already completed the payment of RM130.3 million of the total RM141.5 million settlement sum, leaving a balance of RM11.2 million to be paid.

"Aside from reducing our current liabilities, we are confident we are on track for a full year of profit," said Brian Iskandar.

The move was a key milestone in DBhd's transformation programme, which has steered its corporate recovery in 2017, and broken its two-year streak of losses with its first quarterly net profit earlier this year, he said.

Meanwhile, DBhd will raise additional funds via a redeemable convertible notes (RCN) issuance programme, together with a bonus issue of warrants.

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The RCN issue, which was approved earlier this month, would give DBhd the ability to raise up to RM150 million to fund the settlement and boost the group's cash flow, said the statement.

"The RCN will also enable DBhd to raise working capital to strengthen its integrated facilities management and project management and consultancy segments, which are currently the main drivers of revenue growth," it said. – Bernama

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