TA ... Aug 09

TA ENTERPRISE expecting the local property market to pick up within the next two years has lined up commercial and residential projects with estimated sales value of RM6 bil to be launched from 2010 onwards.

The biggest property project will be a mixed commercial development in Sri Damansara that will spread over an 18.2-hectare site, with the first launch consisting of shopoffice and small office-home office lots set for 1Q-CY2010. " .... This development will have a GDV (estimated sales value) of RM3 bil over seven years to 10 years ...." said MD & CEO M/s ALICIA TAN the Group's AGM on Jul 30, 2009.

Another project will be the 1.32-hectare freehold commercial development named 'Nova Square' which will include a five-star hotel tower, a block of luxury residences and an office tower and lifestyle podium, set for launch in 2012 with a GDV of RM1.3 bil.

Other developments include a mixed commercial development opposite KLCC to be launched in 2011 with GDV of RM1.2 bil, residential development at Jalan U-Thant with GDV of RM110m to be launched in 2010, and condominium development at Dutamas with GDV of RM300m to be launched also in 2010.

PROPERTY DIVISION
Going forward, ALICIA TAN hoped that TA's property division will be able to contribute equally to total profit as it was turning into a reputable player in the high-end property market like the Group's financial services, which included stockbroking.

FINANCIAL SERVICES DIVISION
In 2008, the financial services was the major contributor to the Group's profit. " .... We believe that the worst is over. The stock market is also better than last year (2008) ...." she said, adding that the Group was also confident of recovering almost all of the RM51m provisions it had made.

FINANCIAL PERFORMANCE
TA made PBT of RM135.5m for FYE Dec 2008, which was 53.1% lower than RM286.9m for FY2007.

NET CASH OF RM400M
TA ENTERPRISE has Net Cash of over RM400m and is keen to build its hotel portfolio by buying or building on an average one a year, ALICIA TAN said.

HOTEL ACQUISITIONS
The Group recently acquired 'The Westin Melbourne' for RM374.7m and the hotel has started to contribute positively to the Group, she said. During 2008, the Group also acquired another hotel, 'Coast Whistler', for RM107m and it is now rebranded as 'Aava Whistler', which is scheduled to reopen on Nov 30, 2009, in time for the 2010 Winter Olympics.

The Group also recently proposed to purchase the entire issued shares of MAURITIUS COMPANY QUAYSIDE GEM ltd, which owns Singapore's MERCHANT QUAY pl - the owner of the four-star hotel 'Swissotel Merchant Court Singapore'. " .... Currently, due diligence is being conducted and on Aug 25, 2009 we will be signing the sales and purchase agreement ...." she said.

TA Group is always on the lookout for more opportunities, according to ALICIA ...." .... Great cities like Hong Kong and London are good locations ...." she said.

LISTING OF PROPERTY UNIT
On the listing of its property unit, TA GLOBAL, ALICIA said it was awaiting approval from the SC. " .... Once that is done, we should be able to list TA GLOBAL ...." she said, adding that the Group has enough landbank to be developed over the next 10 years.

Related:
TA ... July 09