By THE STAR
KUALA LUMPUR: Sarawak-based property developer Naim Holdings Bhd is looking to grow its investment in properties to more than RM1bil in five to 10 years to ensure a constant stream of recurring income.
“In five to ten years, we are aiming to have property investments in excess of RM1bil in shopping malls, hotels and other investment properties,” chief executive officer Datuk Hasmi Hasnan told reporters in a media briefing.
He said it would most likely develop the said properties organically, as it was not easy to acquire good completed properties, which were usually targeted by real estate investment trusts.
Currently, it has one shopping mall worth RM80mil with a leasable area of 150,000 sq ft in Miri.
It has plans to build additional malls in Kuching and Miri, while also looking into building a hotel in Bintulu.
Aside from that, it is exploring opportunities to venture into property development out of Sarawak.
He said its focus would still be on Kuching, Miri and Bintulu, while looking into other markets like Kota Kinabalu, Sabah; Kuala Lumpur; Selangor; Seberang Prai, Penang and Negri Sembilan concurrently.
Back in its turf, it has a landbank of 971.25ha, with an estimated gross development value of RM8bil.
He was positive on the outlook for its property development segment but was less optimistic on its construction arm due to its overseas venture.
For its second quarter ended June 30, 2013, pre-tax profit fell 68.61% to RM11.54mil from RM36.76mil year-on-year due to RM7.4mil in operating losses from its project in Fiji and some projects in the remote areas of Sarawak.
“The causes were, amongst others, changes in scope of works by the client following contractual and technical disagreements, more than normal unfavourable weather conditions, logistics challenges, a tougher working environment and also foreign exchange losses in relation to the overseas project,” Hasmi explained.
Pre-tax profit for the first half, however, was 5.34% higher at RM62.9mil on the back of RM313.77mil in revenue contributed by sales of properties in Miri and Bintulu.
“We are still confident that the project in Fiji will contribute positively to the company next October,” he said, adding that the Fiji Road Authority had agreed to change the scope of work.
– Malaysia Real Estate News