business

Naza TTDI planning six launches

KUALA LUMPUR: Naza TTDI Sdn Bhd plans to launch six property development projects between 2022 and 2024, with a gross development value (GDV) of RM3.7 billion.

Chief executive officer Daniel Lim Hin Soon said out of the six projects, two are from its flagship development - the KL Metropolis, with a GDV of RM2.62 billion.

The two development in KL Metropolis that Naza TTDI planned to launch are the Met 7, a serviced residence and Met 9, a six-star hotel.

"The development of Met 7 is expected to kick in after the completion of Met 1, which we targeted this year.

"KL Metropolis is the game-changer for Naza TTDI, and we intend to accelerate our development pace for this township. Conceived to be a community-powered by an enhanced human experience, KL Metropolis aims to integrate trade, commerce, living and transport in one bustling hub," he told the New Straits Times in an interview recently.

KL Metropolis is expected to be the next most sought after address for the new generation as it boasts of being created as a modern, inclusive and sustainable ecosystem.

A city within a city where trade, commerce, living and transport converge on prime land strategically located by the prestigious townships of Damansara Heights, Sri Hartamas, Mont Kiara and Bangsar.

The RM21 billion GDV KL Metropolis township, launched in October 2011, spans 30.55 hectares (ha), with the Malaysia International Trade and Exhibition Centre (MITEC) at its centre.

"KL Metropolis is also envisaged to be Kuala Lumpur's International trade and exhibition district to position Malaysia as a preferred Meetings, Incentives, Conferences and Events (MICE) destination in the region," he said.

Besides KL Metropolis, Naza TTDI had collaborated with Nusmetro Property Sdn Bhd for the development of 3.29 acres featuring three towers comprising simplex, duplex suites and serviced residences, which were completed and handed over in the first quarter of this year.

Other projects under the township are under development, including an office tower, hotel residences at Somerset KL Metropolis, residential units at MET1 and two retail mall levels.

As the key business driver for the company's main mega project and need a lot of funding besides bank financing and other sources of financing, in April this year, Naza TTDI announced that it had established a Sukuk Murabahah programme of up to RM300 million in nominal value via its wholly-owned subsidiary Naza TTDI Capital Bhd.

Proceeds will be used to develop KL Metropolis and other general corporate purposes, mainly on plans for expansion and growth, future launches for the next five years, improvement and focus on NAZA's execution, and developing their human capital.

Earlier this month, NAZA TTDI Capital has issued the first tranche of the Sukuk of RM86.25 million.

The Sukuk programme was lodged with the Securities Commission on April 22, 2021, and this will allow Naza TTDI to issue Sukuk over the next 15 years.

Lim said the company's priority was to grow its business based on the Naza 2.0 transformation plan.

The Naza 2.0 aims to improve operationally and cost efficiencies across all businesses, create value, eliminate redundancies, become leaner, more agile, and streamlined for long-term growth and sustainability.

"The Naza Group is looking at becoming an asset-light company and will continue to strengthen our core competencies of being leaner, robust and only select the best practices in conducting the business in tandem with the current operating environment.

"Hence, we can chart our growth organically, at the same time to continue exploring new opportunities," he said.

Under the Naza 2.0 transformation plan, Naza TTDI is taking the opportunity to unlock the value of its land banks for new developments and readjustment of investment properties portfolio through selling some of the non-core assets and focus on those strategic lands for development.

Meanwhile, Lim said the company's land bank currently stands at 378.4ha, with a GDV of RM18 billion.

He said this would keep the company busy for at least 10 years.

"As a developer, we always think of landbank as our lifeline. So we are constantly on the lookout, and so far, most efforts are concentrated in the Klang Valley," he added.

Landbank is important for developers to keep on coming with new development projects that will benefit and contribute to the nation's economic growth.

Hence it will encourage investors to invest, and it helps to increase the land and properties market values, he said.

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