TTDI DEVELOPMENT Sdn Bhd has certainly proven its resilience as a property developer and looks set to continue its prowess as one of the major players in the property development scene, despite being put up for sale by its parent Pengurusan Danaharta Nasional Bhd.
Last Tuesday, Danaharta invited interested parties to take part in an open tender for the entire 223,000,002 RM1 shares in TTDI Development. The shares represent 100% of TTDIs issued and paid-up capital. The offer for sale of TTDI is not the normal Danaharta open tender sale, which usually involves non-performing loan (NPL) borrowers.
The sale of TTDI is in line with Danaharta's strategy of liquidating non-cash assets before the special purpose vehicle (SPV) winds down its operations next year.
The tender exercise will not have any effect on the business activities of TTDI which will carry on as normal, Danaharta said in a statement to announce the open tender exercise for TTDI.
According to Danaharta, the cash generated will be used largely to redeem its bonds, issued to purchase NPLs from financial institutions during the Asian financial crisis.
Danaharta has issued a total of 15 tranches of bonds with face value of RM11.14bil to acquire NPLs from various institutions to prevent a meltdown in the banking system.
TTDI is wholly owned by Danaharta via its 100% subsidiary Danaharta Hartanah Sdn Bhd. Formerly a wholly-owned unit of Permodalan Nasional Bhd (PNB), TTDI was acquired by Danaharta in 2000 for RM245.3mil to assist the SPV in its property activities.
The company was selected based on its good track record and expertise in property management and development.
Danaharta said TTDI had the much-needed resources and expertise to manage and dispose of properties that might not be sold through the regular tenders of foreclosed properties.
With over 30 years of experience and a strong profit track record, the ISO 9001:2000 certified organisation is the developer of the upmarket Taman Tun Dr Ismail township in Kuala Lumpur, as well as the Taman TTDI Jaya and Seksyen 13 townships in Shah Alam.
The widely acclaimed Taman Tun Dr Ismail in Kuala Lumpur was awarded the Best Residential Development in 1993 by the International Real Estate Federation (Fiabci-Malaysian Chapter).
TTDI is now helmed by executive director Johan Ariffin, who was formerly Danaharta's senior general manager of property, before he joined TTDI in July 2002.
Johan has over 20 years of experience in real estate financing, development and property management and consultancy.
As at December last year, TTDI has undeveloped land bank of 64.26 acres with an estimated market value of RM133.9mil. The land located in Taman Tun Dr Ismail in Kuala Lumpur and Shah Alam had been earmarked for commercial and residential development.
Its ongoing developments are on a total land area of 40.56 acres in Shah Alam and Taman Tun Dr Ismail in Kuala Lumpur. The projects include Mayang Sari on 15.26 acres in Taman TTDI Jaya, Section U2, Shah Alam. Undertaken by TTDI Jaya Sdn Bhd, the project featuring 230 double-storey terraced houses is about 90% complete.
Mayang Sutera is another residential development to be undertaken by TTDI Jaya. Located on 12.82 acres, also in Section U2, Shah Alam, the project would comprise 72 two- and 2½-storey semi-detached houses and 10 bungalows.
The Laman Sanur project on 7.59 acres in Section 13, Shah Alam, undertaken by Tadisma Harta Sdn Bhd, is being developed into 80 two- and 2 ½-storey terraced houses.
The other two developments coming up in Taman Tun Dr Ismail are the 21-storey Residence Condominiums on 1.5 acres, and The Plaza Condominiums and three-storey shop offices.
TTDI's investment properties include the Giant building on 15.24 acres in Section 13, Shah Alam. The building, with a total land area of 368,254 sq ft, is leased to Dairy Farm Giant Properties Sdn Bhd and is occupied by Giant Hypermarket and Guardian Pharmacy.
The company's second investment property is the 19-storey Menara Polo Condominium in Ampang, which is owned by TTDI Realty Sdn Bhd.
As at March 31, TTDI has no outstanding bank borrowings. It is seeking to secure standby lines of credit from financial institutions to finance its development projects.
A tax exempt dividend of 13.45% amounting to RM29.99mil for the financial year ended Dec 31, 2003, had been declared. If any further dividends were declared after the bids are submitted, all bidders would be duly notified.
Danaharta said it preferred cash bids and potential bidders would need to have strong financial backing and a minimum 30% bumiputra equity interest (for corporate bidders). To participate in the tender, earnest money of RM1mil is required and is refundable to unsuccessful bidders after announcement of the successful bid.
Potential bidders are required to register with Danaharta on May 26, from 9am to 5pm, while the closing date for submission of bids will only be announced on May 31, after taking into account the potential bidders.