By KEVIN WONG
TA GLOBAL Bhd will use money from the sale of its Australian development land in Little Bay, New South Wales, Australia, to strengthen its finances and look at opportunities in the property and hospitality areas.
The development property will be sold to Karimba Properties Pte Ltd for RM749.02 million cash.
TA Global CEO Tiah Joo Kim said the sale of the 24.3 acres (9.83ha) undeveloped land was to pay off the company debts of RM583.36 million.
“After the repayment of the bank borrowings, the company’s overall gearing will reduce from 0.85 times to 0.61 times, a level we are comfortable with.
“This will also provide greater financial flexibility for us to seek viable investments in hotels, properties and development land as opportunities arises,” he told reporters after the company’s EGM in Petaling Jaya, Selangor, yesterday.
In the disposal of the development property by TA Global in Little Bay, Karimba Properties will acquire the remaining 24.3 acres of undeveloped land which consists of eight development lots and 26-house lots, located at Anzac Parade.
In regards to the government’s decision to freeze the approval on luxury and commercial units, Tiah said it will not affect the company’s two upcoming projects.
“For next year, two projects that we will be launching have already obtained the building permits. The government’s decision on the freeze might even be good for the market as there is an oversupply in certain segments of the market,” he said.
He said it could also benefit property players with both financial and staying power in the market.
Finance Minister II Datuk Seri Johari Abdul Ghani said the decision was made after the Cabinet scrutinised a detailed Bank Negara Malaysia’s report, published in June, regarding the situation.
The freeze will stop development of new luxury shopping malls, commercial complexes and condominiums.
For 2018, TA Global has two project launches ready in the pipeline according to Tiah.
The projects are two residential towers situated at Dutamas, and the TA3 and TA4 skyscrapers in the city centre.
Tiah said the gross development values for both projects amounted to RM482 million and RM2.1 billion respectively, and are expected to be completed by the second quarter of 2021 and 2023.