By Sharen Kaur
sharen@nstp.com.my
Published in NST on September 6, 2012
SUBANG JAYA: Bolton Bhd, one of the oldest property developers in the country, is raising RM380 million via sukuk issuance to fund projects worth around RM1.7 billion in 2013.
Its executive chairman Tan Sri Azman Yahya said the sukuk, with a seven-year facility, will be issued by the end of the year.
"We are gearing for growth and the RM380 million will help us replenish our landbank for new projects. We are bullish on landed residential properties in the Klang Valley and will continue to buy land here," said Azman yesterday after the company's shareholders meeting.
Bolton currently owns 520ha, the bulk of which is in the Klang Valley. It has some RM100 million in cash and its net gearing ratio is 0.15 times.
Azman expects unbilled property sales in the current financial year ending March 31 2013 to exceed last year's record of RM559 million.
He said early bookings remain strong for projects like The Wharf, 51G Kuala Lumpur and Tijani Ukay, which are slated to be launched in the next six months.
Bolton is launching serviced apartments and a retail mall at The Wharf, 71 condominum units at 51G Kuala Lumpur and 118 zero-lot bungalows at Tijani Ukay, with combined gross development value of RM850 million.
Azman said for Tijani Ukay, Bolton achieved up to 70 per cent bookings during the pre-launch in July. The price tag for each bungalow lot was from RM2.2 million to RM4.5 million.
"There is a good hedge against inflation. The people are still buying properties despite all the government measures to cool off rising prices.
"What we see is a slowdown in purchases made by speculators but buying interest remains strong from owner occupiers and investors," Azman said.
Azman does not foresee property prices dropping because of issues like rising cost in land and building materials.
He said what the country need is a fundamental shift towards the provision of affordable housing at between the RM100,000 and RM300,000 price range for the lower to middle income groups.
"The country needs affordable housing and the only party that can address the issue is the government as they have the landbank," Azman said.
sharen@nstp.com.my
Published in NST on September 6, 2012
Bolton to raise RM380m via sukuk issuance
Its executive chairman Tan Sri Azman Yahya said the sukuk, with a seven-year facility, will be issued by the end of the year.
"We are gearing for growth and the RM380 million will help us replenish our landbank for new projects. We are bullish on landed residential properties in the Klang Valley and will continue to buy land here," said Azman yesterday after the company's shareholders meeting.
Bolton currently owns 520ha, the bulk of which is in the Klang Valley. It has some RM100 million in cash and its net gearing ratio is 0.15 times.
He said early bookings remain strong for projects like The Wharf, 51G Kuala Lumpur and Tijani Ukay, which are slated to be launched in the next six months.
Bolton is launching serviced apartments and a retail mall at The Wharf, 71 condominum units at 51G Kuala Lumpur and 118 zero-lot bungalows at Tijani Ukay, with combined gross development value of RM850 million.
Azman said for Tijani Ukay, Bolton achieved up to 70 per cent bookings during the pre-launch in July. The price tag for each bungalow lot was from RM2.2 million to RM4.5 million.
"There is a good hedge against inflation. The people are still buying properties despite all the government measures to cool off rising prices.
"What we see is a slowdown in purchases made by speculators but buying interest remains strong from owner occupiers and investors," Azman said.
Azman does not foresee property prices dropping because of issues like rising cost in land and building materials.
He said what the country need is a fundamental shift towards the provision of affordable housing at between the RM100,000 and RM300,000 price range for the lower to middle income groups.
"The country needs affordable housing and the only party that can address the issue is the government as they have the landbank," Azman said.
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