By BUSINESS TIMES
A MINI township is set to take shape on the southwestern end of Penang island in three years, if Hunza Properties Bhd’s (HBP) (5018) plan takes off.
The developer, which recently bought about 6.48ha land in Bayan Baru for RM82 million, is eyeing a multi-billion ringgit integrated development, which will serve as a mini city, executive chairman Datuk Khor Teng Tong said yesterday.
“We expect to complete the proposed acquisition latest by the end of our 2012 fiscal year and hope to get the project off the ground in that year,” he told a media briefing in Penang announcing HBP’s 2010 second quarter earnings.
The group’s financial year ends on June 30.
Khor said HPB is currently looking to relocate an estimated 800 squatter households occupying the land in Bayan Baru.
“I am confident we can find a solution to the relocation issue,” Khor said, add-ing that Hunza is well-versed with the issue through experience in previous projects.
The company is now looking for professionals like architects to develop the proposed mini city.
“We need the expertise of both local and foreign consultants,” he added, saying that an international performing arts centre, residential high-rises and serviced apartments may be some of the features in the new development.
On the financial front, Khor said the gearing ratio of HPB is currently at a minimum level.
“The rights issue exercise currently being carried out will further strengthen our financial position.
“Added to this is the anticipated strong cash inflow from the current level of over RM200 million of unbilled sales,” he said.
For the second quarter ended December 31 2009, the company recorded RM59.4 million in revenue and RM13 million in profit after tax. Revenue more than doubled while net profit surged 92 per cent from the same period in 2008.
– Malaysia Property News dot net