Kuching Paragon integrated development in Kuching, Sarawak by Naim Group of companies. Image source from naimproperties.com.my
Naim Holdings Bhd will develop some 2,500 affordable homes with artificial intelligence (AI) in Sarawak in the next five years in line with the market demand for affordable housing.
It will spend some RM500 million to build the smart homes.
Naim group managing director Datuk Hasmi Hasnan had said in June that the group hopes to capture some 40 to 60 per cent of the Sarawak market for affordable housing segment, targeting those who intend to purchase a property priced at RM300,000 and below.
The group has been involved in the affordable housing segment since its inception some 25 years ago and to date has built more than 23,000 properties.
Hasmi had disclosed that the venture could be partially funded by bank loans, asset sales, and new capital injections.
Naim will fund the latest housing development partially through the sale of two parcels of vacant land measuring a total of 405.6 hectares in Bintulu to Sarawak Economic Development Corp (SEDC) for RM340 million.
The lands are located at the Kidurong Industrial area off Jalan Sabekas at Tanjong Kidurong, Bintulu, and have a 99-year tenure each expiring in November 2112.
Naim’s wholly-owned subsidiary Petrochemical Hub Sdn Bhd is selling the two parcels to SEDC to unlock the value of the assets and propose a dividend to shareholders.
The disposal consideration of RM340 million represents a discount of RM60 million or about 15 per cent over the market value of RM400 million based on the valuation from an independent valuer’s report dated November 19, 2018.
Naim told Bursa Malaysia last month that the total disposal consideration of RM340 million is fair and reasonable in view of the limited market for such a sizeable land, taking into consideration of the location and market value of the subject lands.
It said even at a 15 per cent discount, the estimated disposal gain from the two parcels is RM115.81 million, representing a reasonable net return of seven per cent per annum to the group’s investment in the subject lands.
Naim had said that there were other potential purchasers who were interested to acquire part of the subject lands but it is selling the two parcels to SEDC to spearhead the development of the petrochemical hub in the region.
The proposed disposal is expected to be completed in the third quarter of 2020.