TA Global sees minimal impact from govt freeze on its luxury development projects

KUALA LUMPUR (Nov 22): TA Global Bhd expects only minimal impact from the recent government freeze on development approvals for shopping complexes, offices, serviced apartments and luxury condominiums priced over RM1 million.

"I believe from the announcement made, it will not affect projects with building permits (BP). For next year, two of the projects that we are launching have secured the BPs," said its chief executive officer Tiah Joo Kim.

However, he opined the freeze might in fact prove useful in addressing issues of oversupply, while benefiting players with financial muscles and staying in power in the property market.

Tiah thus expressed he is confident the impact, if any, would be minimal to its company, and therefore the company will press on with its project launches.

Next year, the company has two project launches in the pipeline — two towers of its residential project in Dutamas located next to the French School of Kuala Lumpur, and the TA3 & TA4 development next to KLCC.

Gross development values (GDV) for the said projects are at RM482 million and RM2.1 billion, slated for completion by second quarter of 2021 and 2023 respectively. 

Meanwhile, shareholders of TA Global unanimously approved today of its unit TA Little Bay Pty Ltd's disposal of their Australian development property located in Little Bay, South Wales, measuring 24.26 acres, to Karimbla Properties Pty Ltd for a cash consideration of AU$245 million (equivalent to RM794.02 million).

Proceeds from the disposal are expected to be received by early January next year, and will be utilised mostly for the repayment of bank borrowings. — theedgemarkets.com