TRIVE BANKS ON KERTIH PROJECT

ECRL, PEGT will yield positive spillover effects on its upcoming development

TRIVE Property Group Bhd is banking on its first-mover advantage through its proposed mixed development project in Terengganu.

Executive director Kua Khai Shyuan is hopeful that the proposed East Coast Rail Link (ECRL), existing Petronas Gas Export Terminal (PEGT) and ongoing Terengganu Economic Transformation Programme (ETP) would yield positive spillover effects on the upcoming development, the Kertih Project.

“We own 20ha in Kertih when we completed the acquisition of our entire stake in Pakadiri De- veloper Sdn Bhd for RM20 million earlier this year,” said Kua after Trive’s extraordinary general meeting (EGM) yesterday.

“This was before there was a definite plan for the ECRL. At that point, our target market was only those who work or have connections to the PEGT. But now, with the ECRL, we expect the land value to appreciate and we are lucky to have entered the market when the price was still competitive.”

The Kertih Project, located within the vicinity of a new township called Bandar Baru Kertih Jaya in Kemaman, will hold an estimated RM284 million in gross development value (GDV) upon completion of all three phases.

“We hope to begin work on Phase One, which comprises 211 units of double-storey terraced houses and 68 units of singlestorey semi-detached houses in the second quarter of next year,” said Kua.

“The GDV and gross development cost for Phase One are RM123 million and RM90 million, respectively. We are expecting RM33 million in profit upon completion of Phase One.

“We are testing the market with Phase One and will only proceed (with the two other phases) if we are satisfied,” said Kua, adding that as landowner, the company might even sell the remaining undeveloped land if that would yield higher returns.

Kua said the Kertih Project allowed Trive to diversify from solely being a green energy solutions provider.

“Solar and green energy would still be our main business for the time being. Venturing into property is just a means of diversifying our portfolio,” he said.

The EGM was to gain shareholders’ approval to raise as much as RM60.5 million. This is through the issue of up to 500 million new shares to Macquarie Bank Ltd.

The 500 million shares, representing 37.41 per cent of Trive shares and up to 27.22 per cent of the enlarged number of issued Trive shares, will be issued at 12.1 sen each.

Kua said it received almost 100 per cent approval for the fundraising exercise, which was expected to be completed in 24 months.