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Tuesday, 10 October 2017

(The Star) TA Global changes plans

Developer will allocate bigger amount of fund to pay debts

PETALING JAYA: Property developer TA Global Bhd has scrapped its initial plans to utilise A$100mil (RM328mil) to acquire either properties, assets or business; and instead plans to use A$180mil (RM595.62mil) to repay bank borrowings within six months.

This is in comparison to the proposed A$120mil it had proposed to allocate for the repayment of bank borrowings in an earlier announcement dated Aug 9.

In a revised statement to Bursa Malaysia, TA Global said it planned to use the A$245mil (RM810.7mil) in proceeds to reduce bank borrowings and plough part of the remaining funds as working capital for ongoing property development projects.

TA Global said the proposed A$180mil it is now allocating to repay borrowings would enable it to reduce the group’s total debts of more than RM1bil as at Sept 30, 2017.

TA Global also plans to use A$46mil (RM152.21mil) as working capital for ongoing property development projects instead of A$20mil earlier.

Back in August, TA Global entered into a put and call option with Karimbla Properties Pty Ltd to dispose of the Little Bay Cove project.

The project is a 33.6 acre freehold residential development master plan located towards the southern end of the Eastern Suburbs in the suburb of Little Bay, just south of Malabar in New South Wales, Australia.

In the latest update, TA Global said it would utilise A$32.4mil as working capital for the development of 179 high-end apartments under the Illume project.

It would also use A$13.6mil as working capital to fund the development cost of several projects.

The projects include mixed development known as TA3 & 4 (comprising a 480-key hotel and 308 serviced apartments within two tower blocks) in Kuala Lumpur City Centre; mixed-development project known as Ativo Suites in Damansara Avenue (comprising 668 serviced residences within two tower blocks with retail shops at the podium) in Petaling Jaya; and a residential project (comprising 364 units within two condominium blocks) in Dutamas, Petaling Jaya.

In its annual report, the group said it has 750 acres of land bank both locally and internationally under its property development division, which it would gradually develop into residential, commercial or mixed development.

Of the 750 acres, 185.92 acres are in planning and development stages and its expected total gross development value is RM15.1bil.

In Malaysia, the property developer has carved a name for itself as a niche luxury lifestyle real estate company through its successful launches of Damansara Avenue, Damansara Idaman, Idaman Villas and Idaman Residence projects.