PETALING JAYA: Property developer Tambun Indah Land Bhd is seeking to increase its land bank size, particularly in the Klang Valley.
The company hoped to use the RM44.2mil, which was raised with the completion of its two-for-five rights issue on June 4, 2012, as well as expected positive cashflow from progressive billings of increase properties sold last year, to fund the land expansion, said managing director Teh Kiak Seng.
“Since our inception in 1994, we have developed a reputation as an innovative and premier property developer in Penang.
“Now, we are ready to expand and look at opportunities available to us elsewhere. We are now casting our net wider and hope to buy new land banks in the Klang Valley and other areas where we can develop projects on our own and, or work in collaboration with a joint-venture partner. With that, we can then take the Tambun Indah brand name to other states,” Teh said in a statement.
The group currently has an existing land bank of around 716.5 acres, mostly situated in Seberang Prai.
However, Teh added that he still believed in the robust strength of the Penang property market. Last year, the total number of residential units that were sold in Penang climbed 68.2% to 30,674 from 18,233 in 2010, while the total value of property transactions rose 59.8% to RM7.7bil.
The Penang Institute data show a 50% average rise in Penang property price since 2007, with condominiums on the island rising by 82%, and terraced and semi-detached or detached units on the mainland climbing by 25% and 30% respectively.
Teh added:“Furthermore, if the current trends continue, prices are expected to rise by a further 20% to 30% over the next few years. This level of market demand is good for the industry as a whole.
“We believe that Tambun Indah is poised to take opportunities from this (situation). Judging by the take-up trends experienced thus far by the group's launches in the first half of 2012, and the two projects that we intend to launch soon. I am optimistic on our performance this year.”
Meanwhile, Tambun Indah announced a first and final dividend of 3.8 sen per share for the financial year ended Dec 31, 2011. This translates to RM11.8mil and represents 50.3% of its net profit for the year. - The Star
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