KUALA LUMPUR: I-Bhd
plans to make a cash call by raising a minimum of RM100mil under a proposed rights issue of redeemable cumulative convertible preference shares (RCCPS).
The company also said on Tuesday it was extending the maturity date of its redeemable convertible unsecured loan stocks (RCULS) of about RM201mil (RCULS extension) maturing on Aug 27, 2019 by three years.
“With the RCULS extension preserving the group’s cash flows and the rights issue raising fresh capital, the group remains steadfast in building-up its property investment and hospitality portfolio while also growing its property development segment,” it said.
Recall that I-Bhd had earlier announced plans to build up its investment properties and hospitality portfolio to approximately RM1bil. This strategy was to provide a strong recurring income stream.
As at end-2018, the group has an investment property and hospitality portfolio worth RM640mil. This compriseding the data centre, 7,700 car park bays, the Best Western @ i-City hotel, the i-City Convention Centre and a 40 % share of the Central i-City Shopping Centre.
“It is envisaged that over the next five years, this portfolio will increase by up to RM300 mil from the development and completion of the Double Tree by Hilton hotel, the associated convention centre, the GradeA, GBI- rated Corporate Office Tower and an additional 3,000 car park bays,” it said.
I-Bhd executive chairman Tan Sri Lim Kim Hong said with the RM1bil investment property programme on track, "we are gearing ourselves for our next growth trajectory, for which we are putting in place a sustainable funding strategy to realise our vision”.
Under I-Bhd’s rights issue, shareholders woud be able to take part in the group's prospects and future growth while also receiving fixed dividends on the redeemable cumulative convertible preference shares.
The rights Issue also strengthened the company’s balance sheet, thereby providing greater financial flexibility.
Lim pointed out I-Bhd's billion dollar investment property portfolio will be enhanced by the fact of i-City being the heart of Selangor’s Golden Triangle, as highlighted by the Menteri Besar of Selangor on various occasions.
Golden Triangles are synonymous with economic development which enhances property values in the medium to longer term which i-City is certain to reap rewards from.
At the same time, the Golden Triangle concept will provide opportunities for the Group to extend its property development activities beyond the current 72-acre footprint of i-City.
Finally, looking at how the golden triangle of KL has developed, we are confident that this concept will also enhance our leisure segment.”
"While there are many dimensions in the development of Golden Triangles, we will continue to focus on digital technology. Given our track record as the No. 1 Technology City, i-City will be a catalyst in helping Selangor to achieve its vision of being a Smart State by 2025,” he said.