Naza TTDI to re­visit IPO plans in next 2 to 3 years

> Property de­vel­oper not clos­ing doors on list­ing, says cur­rent con­di­tions not con­ducive

The Sun (Malaysia) - - SUNBIZ - BY EVA YEONG

KUALA LUMPUR: Naza Corp Hold­ings Sdn Bhd’s property arm Naza TTDI Sdn Bhd will look at its ini­tial pub­lic of­fer­ing (IPO) plans again in the next two to three years.

“We’ve been talk­ing about IPO for a while now. We’ve ex­plored this twice but un­for­tu­nately the mar­ket wasn’t in our favour and we de­cided to shelve the idea. I guess the tim­ing is not okay, right now, to look at IPOs,” said Naza Corp ex­ec­u­tive chair­man and CEO SM Nasarudin SM Nasimud­din.

“But we are not clos­ing our doors on it, we could pos­si­bly ex­plore it in two to three years from now,” he told re­porters at the launch of KL Me­trop­o­lis show gallery yes­ter­day.

The property de­vel­oper had pre­vi­ously spo­ken about its list­ing plans twice in the past, circa 2008 and 2011 but the plans never took off.

Naza TTDI deputy ex­ec­u­tive chair­man and group man­ag­ing di­rec­tor SM Faliq SM Nasimud­din said some com­po­nents of the RM20 bil­lion KL Me­trop­o­lis will be suit­able for in­jec­tion into a real es­tate in­vest­ment trust (REIT) in the fu­ture.

“That’s why it is very im­por­tant for us to start ini­ti­at­ing the re­tail mall and the ho­tel com­po­nents. For Naza TTDI and also on the group side, we are look­ing at ideas on how to con­sol­i­date the as­sets into a REIT. It is al­ways the plan but of course we have to wait for cer­tain ma­tu­rity of the prop­er­ties first,” he said.

First an­nounced in Oc­to­ber 2011, KL Me­trop­o­lis ini­tially had a gross de­vel­op­ment value (GDV) of RM15 bil­lion. Faliq said an “of­fi­cial” launch will be in Jan­uary 2017.

“When the mar­ket trick­les in two to three months’ time, it will be bet­ter be­cause the Bud­get would have been an­nounced and the MRT would be up and run­ning al­ready. So I think the sen­ti­ments would change in the property sec­tor,” he said.

“The rea­son why we launch now, is be­cause we wanted to cre­ate the ex­i­hi­bi­tion cen­tre first. We look at that as a cat­a­lyst. We could have launched this empty project but three years ago we would not have been able to cap­ture the value we can get to­day. So by do­ing the ex­hi­bi­tion cen­tre, now when we bring our buy­ers, they can see it is com­pleted and be part of the more so­lid­i­fied vi­sion,” he added.

The ex­hi­bi­tion cen­tre, named Malaysia International Trade & Ex­hi­bi­tion Cen­tre (Mitec), was com­pleted in June. Faliq said it is in the midst of ob­tain­ing var­i­ous ap­provals, in­clud­ing fire and safety from the au­thor­i­ties.

Mitec, which will be op­er­a­tional in March next year, is ex­pected to be a key venue for ath­letes as Malaysia hosts the 29th South­east Asia Games. The GDV of Mitec alone is RM810 mil­lion and it takes up 13.10ha. It has a gross floor area of one mil­lion square feet and is able to ac­com­mo­date 40,000 vis­i­tors at any one time.

Be­sides Mitec, the rest of KL Me­trop­o­lis is di­vided into eight precincts namely Met 1, Met 2, Met 3, Met 5, Met 6, Met 7, Met 8 and Met 9. Met 1 com­prises two blocks of of­fice tow­ers, one ser­viced res­i­dences and two re­tail malls with net let­table area of 81,000 sq ft to be developed on 4.29ha. The to­tal GDV of Met 1 is RM1.3 bil­lion.

Faliq said the soft launch for Met 1 res­i­dences will be held next month. He said the 616 res­i­den­tial units have al­ready gained in­ter­est ahead of its of­fi­cial launch in Jan­uary next year and is con­fi­dent of achiev­ing 60% take-up rate be­fore the of­fi­cial launch.

The es­ti­mated sell­ing price is RM1,000 to RM1,100 per sq ft for units sized be­tween 650 sq ft and 1,600 sq ft.

The en­tire KL Me­trop­o­lis takes up 75.5ha with a GDV of RM20 bil­lion and will be developed over 15 years. To date, Naza TTDI has three strate­gic joint ven­tures with Nus­metro Property Sdn Bhd, Triterra Me­trop­o­lis Sdn Bhd and Hap Seng Land Sdn Bhd.

ZULK­I­FLI ERSAL / THESUN

Faliq (cen­tre) at the launch of KL Me­trop­o­lis Show Gallery in Kuala Lumpur yes­ter­day.

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