KUALA LUMPUR: Naim Holdings Bhd, a pioneering property developer in Sarawak, has sold 180.8 hectares of land in Kuching that was acquired some 16 years ago for RM223.38 million.
Naim said the disposal was a strategic step to inject working capital and pare down part of its debts of some RM437 million as at March 31 2024.
"This decision is a part of their ongoing commitment to ensure long-term sustainability of their business operations in the current tight property market. This will provide an opportunity to realise gains and unlock the value of its investments after 16 years of holding," it said in a statement today.
At the same time, Naim said it is shifting its focus towards developing affordable homes in line with the state government's effort to provide affordable housing.
The company aims to develop some 10,000 units of affordable housing, the bulk of which is in Miri from the remaining land that it has.
"We want to assure our stakeholders that this sale is conducted with the utmost respect for our core corporate values and with a clear focus on our future. We recognise the importance of making prudent financial decisions that support our continued success and resilience." said group managing director Datuk Hasmi Hasnan.
Naim pointed out that the decision aligns with recent trends in the property market, with prominent developers such as Eco World Malaysia and UEM Sunrise Bhd divesting land assets to strengthen their financial positions.