TALAM Corp Bhd hopes to launch two new housing projects in Selangor by the end of the year on a joint-venture basis with their respective landowners.
Its executive chairman Tan Sri Chan Ah Chye said the company had already identified two parcels of land measuring 500 acres and 800 acres and located in prime development areas in the state.
Through the joint venture concept, there is no need for the company to acquire the land, which would be very expensive given the prime locations,'' he said, adding that the concept would keep the company's debts at manageable levels.
Chan was speaking after witnessing the exchange of documents in Kuala Lumpur for Talam's asset-backed al-Bai Bithaman Ajil Islamic debt securities facility worth RM986mil yesterday.
Part of the proceeds amounting to RM580mil would be utilised to repay part of Talam's short-term debts, and the rest to complete the Taman Puncak Jalil and Saujana Damansara projects.
The two projects, developed by Talam's wholly-owned subsidiary Maxisegar Sdn Bhd, are the company's most successful projects with a combined gross development value of RM2.9bil. To date the projects have locked in sales worth RM1.8bil and the balance of RM1bil worth of properties would be launched over the next three years,'' Chan said.
Talam has scored several firsts with the launch of its asset-backed securitisation (ABS) exercise.
Apart from being the first Islamic ABS issuance undertaken in South-East Asia, the exercise is also unique as it involves the securitisation of future receivables from residential properties.
The exercise involves Maxisegar selling its rights and interest in the Taman Puncak Jalil and Saujana Damansara projects for up to RM1.07bil to a special purpose vehicle, Ambang Sentosa Sdn Bhd.
This will eliminate the mismatch of funding of existing debt securities issued by Maxisegar and the company would enjoy interest savings,'' Chan added.
Ambang Sentosa will then issue Islamic debt papers of up to RM986mil in three different classes with maturity dates ranging from one year to three years from the date of issuance.
These securities are to be redeemed at the said maturity period with the progress billing to be collected from the acquired asset pool,'' Abrar Discounts Bhd managing director Wan Abdul Rahim Kamil said.
Abrar is the lead adviser for the exercise.