KUALA LUMPUR: Global Oriental Bhd 's shareholders today agreed to the disposal of two parcels of land in Selangor for RM142.35 million to improve cash flow and loan repayment.
Executive director, Wee Beng Aun, said the disposal would also help support the company's new development in Jalan Ampang here.
"We need the money as working capital for the 'Pavilion Embassy', a mixed joint-venture development project with the Malaysian Rubber Board," he told reporters after the company's extraordinary general meeting here today.
The 2.27-hectare project, comprising integrated townhouses and high-end condominium, is expected to begin in the coming month, with completion period for about five years. It would also comprise commercial offices.
Wong said the move was to diversify the company's property business, apart from developing the core businesses of townships mainly in Equine Park, Selangor and Batu Kawan, Penang.
He said the company expected 2015 to be a challenging one due to uncertainties such the introduction of the Goods and Services Tax on April 1, and stricter lending guidelines from the financial and banking institutions.
"These are some of the issues that are holding back the purchasers from committing themselves. With the tightening of loans, the number of buyers has also decreased," said Wee.
However, Wee was confident that properties below RM1 million would still have good prospects, particularly in locations with good transportation facilities.
Meanwhile, chief financial officer, Ng Eek Meen, said the company has been performing better for the past three years after it underwent a major management restructuring of management and re-strategising its investments in 2010.
"We are also working hard to reduce our debts," he said. - Bernama