TSR boosting presence in core markets

An artist’s impression of the PD Waterfront project in Negri Sembilan, which has an estimated gross development value of RM2.5 billion.

 

By Sharen Kaur - Published in NST Property, January 15, 2020

Property and construction group TSR Capital Bhd is beefing up its presence in its core markets and anticipates the business environment to improve in line with improved foreign direct investments (FDIs).

Chief financial officer Ng Kim Keong told the New Straits Times that TSR was cautiously optimistic of its outlook this year.

He said the group had received inquiries from Taiwan, Hong Kong and Japanese investors for joint-venture (JV) opportunities for its land bank on Pulau Langkawi and in Port Dickson.

TSR is developing a 31.16ha site in Kuah town in Langkawi and 25.5ha in Port Dickson, where it has started a project called PD Waterfront.Ng said the development progress for PD Waterfront, which has an estimated gross development value (GDV) of RM2.5 billion, was currently at 20 per cent.

“We plan to build water villas, hotels, apartments and retail units. Investors are coming to us for JV
opportunities. They want to purchase the properties for investment or development.”

The land in Kuah is located next to St Regis Langkawi and overlooks the Andaman Sea.

TSR is planning a resort township jointly with landowner Terusan Al-Maju Sdn Bhd and United States-based Globe Venture Holdings Inc.

The resort development will include apartments, resorts, hotels and commercial units with the potential GDV exceeding RM3 billion.

“We are focusing on a niche market. We are in advanced stage of discussions with some of the investors and if they come in, it will boost our projects in terms of development and sales as they can market the properties in their countries,” said Ng.

He said TSR was improving its cash flow to support ongoing projects.

In November, the group received shareholders’ approval to sell 70 per cent in its TSR Tower at Mutiara Damansara to Ivory Code Sdn Bhd (ICSB), to raise RM18.59 million in cash and free up shareholder advances of RM14.39 million.

“We are keeping our options open on what we want to do next. The building is 100 per cent occupied and gives us good returns,” said Ng.

ICSB is a company linked to TSR deputy chairman Tan Sri Lim Kang Yew.

TSR said in a filing with Bursa Malaysia the disposal served as an opportunity for the group to raise funds and improve its cash reserves.

Completed in April 2014, the 17-storey building located near the Curve, Tesco, Ikea, IPC Shopping Centre and eCurve, has a net lettable area of 152,000 sq ft.

On whether the building was still up for sale, Ng kept mum.

The NST reported in 2017 that TSR was looking to sell the building for close to RM180 million.

TSR had received inquiries about the property from private investors who planned to buy it to house their corporate offices or for investment purposes.

There were also inquiries from local government agencies and multinational corporations looking to relocate.

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