PROPERTY-based TWL Holdings Bhd (formerly Tiger Synergy Bhd) will pursue the affordable housing path to drum up its future earnings.
This follows the company’s inking of a novation-cum-supplemental sale and purchase agreements yesterday (Aug 4) to acquire three parcels of lands for RM45 mil cash with three parties as follows:
- The agreement reached between Tinta Kaca Development Sdn Bhd, an 80%-subsidiary of TWL Commodity Sdn Bhd which in turn is a wholly-owned subsidiary of TWL with INTA Development Sdn Bhd and Sime Darby Property (Bukit Raja) Sdn Bhd (SDP Bukit Raja) to acquire a piece of vacant freehold land measuring 22,234 sq metres in USJ 3 @ USJ Heights, Selangor for RM10 mil cash;
- Tinta Heights Development Sdn Bhd, an 80%-subsidiary of TWL Commodity, forging an agreement with INTA Development and SDP Bukit Raja to acquire a parcel of freehold land measuring 23,237 sq metres also in USJ 3 @ USJ Heights for RM12 mil cash; and
- Alma Land Development Sdn Bhd, a 70%-subsidiary of TWL Commodity signing a novation-cum-sale and purchase agreement with INTA Development and SDP Bukit Raja to acquire a parcel of freehold land measuring 35,440 sq metres in Putra Heights, Selangor for RM23 mil cash.
A Bursa Malaysia filing shows that TWL intends to develop three affordable housing projects under the Rumah Selangorku scheme whereby the three newly acquired land plots will be developed into 2,600 units of affordable housing under the Rumah Selangorku scheme.
“These land acquisitions will accelerate our push into the development of affordable housing projects which is in line with the group’s business strategy,” commented TWL’s managing director Shirley Tan Lee Chin.
“The acquisitions fit into our group’s strategy to acquire land bank in strategic locations at attractive prices given the anticipated softer property market following the COVID-19 pandemic.”
The latest proposed undertaking will add to the 10 ongoing property development projects by the group which boasts a total gross development value (GDV) of RM2.63 bil.
According to Tan, the latest affordable housing project is poised to contribute positively to TWL’s future earnings with a total estimated GDV and gross development cost (GDC) of RM624.1 mil and RM523.5 mil respectively.
She further expects the acquisition for the three land parcels to be funded via internally generated funds, bank borrowings and future fund-raising exercises to be undertaken.
“We aim to expedite the progress of its current projects since the transition into the endemic phase in April this year in order to generate revenue and cash flows for the group,” noted Tan.
“Aside from the affordable housing development, the group will also explore other opportunities for new property development projects with a priority on the affordable housing segment as well as the acquisition of landbanks in strategic locations at attractive prices.”
With the recovery seen over the last few months and the new development projects that TWL has in the pipeline, she is optimistic of the group’s prospects moving forward.
At the close of yesterday’s trading, TWL was unchanged at 6.5 sen with 7.28 million shates traded, thus valuing the company at RM243 mil. – Aug 5, 2022
