By LYDIA NATHAN
GRAND-FLO Bhd has entered into two agreements for the purchase of property assets in Genting Highlands, Pahang.
The information technology provider, in a Bursa Malaysia filing yesterday, said both deals with Galeri Tropika Sdn Bhd (GTSB) are valued at RM423 million and will be for a mixed development project known as “Grand Ion Majestic” (GIM Project).
The GIM Project will consist of 1,885 units of service apartments, 24 retail lots and six office lots with 45 accessory parcels with a proposed strata area.
The deal will be satisfied by cash, assumption of liabilities and redeemable convertible unsecured loan stocks to GTSB.
Grand-Flo said, as per the agreement, RM15.2 million is to be paid out upon completion, while the remaining RM197 million will be via issuance at an issue price of 32 sen per share.
“The project is expected to bring forth an estimated gross development value to Grand-Flo of RM1.1 billion with an estimated gross development profit of RM252.25 million.
“It will also enable the group to significantly scale up its property development business and expand its geographical reach to Genting Highlands which is one of Malaysia’s most matured and established tourism hotspot,” Grand-Flo said.
Grand-Flo posted a net profit of RM5.63 million for its financial year ended Dec 31, 2020 (FY20), a 112% increase from the RM2.65 million recorded in FY19. Its revenue also jumped 11% to RM76.9 million from RM69.42 million for the year under review.
The group said following the completion of disposal of its enterprise data collection and collation system segment, it will aim to focus on its property division.
Its group MD Datuk Seri Yap Ngan Choy said the group was encouraged by the momentum gained and looks forward in sustaining the growth trajectory.
“Despite the challenging market conditions due to the Covid-19 pandemic, Grand-Flo’s property development division’s net profit surged by 176% to RM12.1 million, a significant improvement compared to RM4.4 million in the previous year.
“We have identified three key corporate exercises to solidify our position in the property development sector. These are segmented to proposed acquisitions, proposed private placement and proposed name change,” he said.
According to Yap, Grand-Flo aims to undertake private placement exercises to raise over RM75 million to fund its current and upcoming property development projects.
Further to this, the group has also proposed a name change from Grand-Flo to NCT Alliance Bhd, subject to shareholders’ approval.
“The NCT brand has grown to be an established and well- respected name in the property sector. The name change reflects our capabilities, commitment and driven spirit in propelling the group ahead into a new stage of growth. We look forward to dedicating our focus and energy towards unlocking the inherent value within our property development projects,” Yap said.
Among NCT’s rehabilitation of mega abandoned development projects include Malaysia’s largest recovery project to date for a 127.5ha township in Bandar Baru Salak Tinggi, Selangor, and Pahang’s largest abandoned housing development project, Genting Highlands Billion Court.