Bstead ... Jun 09

Khazanah Nasional Bhd and BStead will be teaming up with Mexican theme park operator , Kidzania, to build a theme park in the Klang Valley.

Khazanah and Bstead are looking to sign the development deal end of June 2009 and seem likely to take up substantial stakes in the project.

Although the exact location for the theme park is unknown, sources say it could be around Mutiara Damansara, where Bstead has existing developments.

Properties under the group in Mutiara Damansara include 18ha of development land, a few office buildings and the Curve shopping centre.

Kidzania, which targets children from the ages of 2 to 14, as based on replicas of a real city, enabling children to gain an understanding of the adult world by experiencing up to 70 different professions.

The inception of the project in Malaysia could boost Bstead’s property development arm and increase the value of its properties in Mutiara Damansara.

It could also revive Bstead’s fortunes, which have been declining. Its gearing ratio is 1.2 times.

As at March 31, 2009, the company’s cash and cash equivalents stood at Rm585 million.

Recently, it proposed a renounceable rights issue to be used for working capital, to defray expenses incurred for the proposal and to repay borrowings.