Published Headline of the Star Biz, 31st October 2011 issue: Star Biz page1
By ANGIE NG
PETALING JAYA: To beef up the financial muscles and market presence of mid-cap property company Dijaya Corp Bhd, its group chief executive Tan Sri Danny Tan aims to enlarge the company's market capitalisation to between RM2bil and RM3bil in the next five to six years from about RM900mil now.
Tan believes the target is achievable if Dijaya adopts the right land-banking expertise to buy land in the right location and leverages on its strong brand advantage.
To raise fund for new land acquisition, Dijaya is undertaking a private share placement exercise to expand its share base from the current 457 million shares to 594 million shares.
Tan said the exercise would also serve to raise the company's share liquidity and promote greater investor interest in the company.
Upon conclusion of the exercise, Tan's 67% stake in Dijaya will be reduced to 51%.
According to Tan, Dijaya is actively looking for opportunities to further expand its land bank in the growth markets of the Klang Valley, Johor and Penang.
In the last five to six months, Dijaya acquired 569 acres in the Klang Valley and Johor to bring its total land bank to 708 acres.
The land will be able to yield a gross development value (GDV) of RM18bil over the next eight to 10 years, and contribute to stronger earnings streams for the company.
Tan said that on an annual basis, Dijaya can look forward to between RM1.2bil and RM1.3bil in new project launches, compared with RM800mil for the current financial year ending Dec 31, 2011 (FY2011).
It is targeting sales of RM500mil for FY2011, RM820mil in FY2012, and RM1.24bil in FY2013. As at September 2011, the company has unbilled sales of RM472mil.
To oversee the upcoming projects, Tan said Dijaya had beefed up its management team. Three executive directors have been appointed to take care of the northern, central and southern regions of Peninsular Malaysia.
“We now have a strong team backed by years of experience in each of their field of expertise. In terms of project planning, we also have to be far-sighted and innovative to continue to excite our property buyers in different locations.
“This will greatly strengthen our performance and lead the company to new heights,” Tan told StarBiz.
He said another of Dijaya's advantage is the Tropicana brand which is already at least 18 to 20 years in the market, with two signature projects to its name the 625-acre Tropicana Golf & Country Resort and 409-acre Tropicana Indah Resort.
Tan said Dijaya would launch RM800mil worth of new projects this year, RM1bil next year and RM1.3bil in 2013.
The first to be rolled out around mid-November will be Tropicana Avenue in Tropicana Golf and Country Resort comprising two floors of retail podium with offices and soho units above the podium block. The RM412mil project is targeted for completion in 2013.
The integrated commercial development of Tropicana Danga Bay on 37 acres will be unveiled in Iskandar Malaysia, Johor in December. The RM3.8bil development will comprise service apartments, hotel, office tower, shopping mall, and retail cum office lots. It will take over 12 years to complete.
Early next year, the 26-acre Tropicana Cheras comprising terrace and semi-detached houses and bungalows worth RM185mil will be launched.
The 227-acre Tropicana Danga Cove in Johor with GDV of RM2.8bil will be unveiled in the first half of 2012.
Two other project launches are also slated for next June. The first will be the 88.5-acre Tropicana Hills in Subang with upper medium range of mixed residential and commercial development. The RM3.5bil project will take eight to 10 years.
Tropicana Bayou, a gated and guarded residential project on 66 acres in Balakong with GDV of RM400mil, is scheduled for launch next June.
Following which will be the Tropicana Gardens commercial centre on 14 acres opposite Giza Sunway in Kota Damansara. The lake-fronting project with GDV of RM1.8bil will feature service apartments, soho units, offices, a hotel and lifestyle retail space. It will take over eight years.
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