Naim Holdings to build 500 affordable homes in 2 years

With an estimated gross development value (GDV) of RM185mil, these residential homes would be constructed in Kuching, Miri and Bintulu where most of the Naim group’s landbank of about 1,560 acres are located.

KUCHING: Naim Holdings Bhd is targeting to build up to 500 units of affordable and medium-priced houses in two years using the industrialised building system (IBS) model to speed up construction.

With an estimated gross development value (GDV) of RM185mil, these residential homes would be constructed in Kuching, Miri and Bintulu where most of the Naim group’s landbank of about 1,560 acres are located.

The group intends to kickstart part of the proposed development in the fourth quarter of 2021, according to Naim managing director Datuk Hasmi Hasan.

Sarawak’s leading developer plans to uitilise part of the RM75mil to be allocated for working capital for property development activities from the proceeds of the proposed disposal of two parcels of land in Bintulu to fund the construction of the 500 units of new homes.

Shareholders approved the proposed land disposal by Naim’s wholly-owned subsidiary Petrochemical Hub Sdn Bhd to Sarawak Economic Development Corp (SEDC) for RM340mil cash at the company’s EGM on Oct 6.

Hasmi expects the disposal to be completed by early next month.

The two parcels of adjoining land are located between PTT Exploration and Production Public Co Ltd. The Sabah-Sarawak gas pipeline (a natural gas pipeline by Petronas linking Kimanis in Sabah and Bintulu) is located directly to the south of the land.

The SEDC has been entrusted by the Sarawak government to spearhead the development of the state’s petrochemical hub project on the land it is acquiring from Naim to cater for the downstream industries.

The Sarawak government is funding a billion-ringgit methanol plant project, the construction of which is underway in Bintulu.The industrial town is home to Malaysian liquified natural gas (MLNG) plants and other major petrocehmical facilities, including the Shell Middle Distillate Synthesis plant.

Naim is planning to construct an IBS plant in Miri, which is estimated to cost about RM30mil, to support the development of the group’s affordable houses. The company will set aside RM15mil from the land sale to finance the proposed plant expected to be operational next year.

The investment in the IBS plant project, said Hasmi, is Naim’s long-term plan to accelerate the development of affordable houses in major towns, as the construction period is expected to be shortened with the IBS technology in place.

According to Naim, affordable landed houses priced around RM300,000 each are in good demand in the soft property market.

According to Hasmi, Naim will make an estimated proforma gain on disposal of RM110.2mil, as its cost of investment in the land in 2013 was RM186.8mil.

Naim will utilise RM117mil from the proceeds to par down the group’s bank borrowings, which stood at RM483.5mil as at Dec 31,2019. It will reward shareholders with a cash dividend payout of RM90mil, which works out to about 18 sen per share based on the company’s 500.74 million shares (net of 13.06 million treasury shares).

Naim, which is celebrating its 25th anniversary this year, has completed some 23,000 residential and commercial properties, mostly in Miri, Kuching, Kota Samarahan and Bintulu. The group’s single largest flagship development is the Permyjaya new township in Miri, which is now home to the oil city’s 20% population.

To mark the anniversary celebrations, Naim has come up with a “Super Deals” mega property promotion, offering discounts and rebates of 25% or more for selected residential and commercial properties across the group.

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