By Pavither Sidhu
With its vision set on shaping and urbanising Kuala Lumpur, the Klang Valley and other main cities in the country, UDA Holdings Bhd has taken measures to ensure the completion of eight of its properties with a combined gross development value (GDV) of RM1.62 billion.
The construction of these projects will be partly funded via a syndicated Islamic financing facility of up to RM500 million with Affin Islamic Bank Bhd, AmBank Islamic Bhd, RHB Islamic Bank Bhd, Bank Pembangunan Malaysia Bhd and Kuwait Finance House (M) Bhd.
Affin Hwang Investment Bank Bhd, AmInvestment Bank Bhd and RHB Islamic Bank are joint-mandated lead arrangers, while Bank Pembangunan Malaysia and Kuwait Finance House are co-arrangers for the syndicated facility.
To be completed over the next few years, the eight projects comprise commercial and residential developments, which UDA and its wholly-owned units will develop.
The projects include Anggun Residences comprising serviced apartments at Jalan Sultan Ismail and bungalows, condominium and shops at Bandar Tun Hussein Onn in Cheras. In Kampong Bahru, KL, UDA is developing Legasi Residences that will comprise apartments, retail lots and office suites.
In the northern region, UDA is developing bungalows, semi-detached houses and apartments under the Bayu Azzahra project in Bertam, Seberang Prai as well as Phase 1 of the Arcadia project comprising shop offices and Phase 2 comprising condominiums in Seberang Prai Tengah.
Meanwhile, in the southern region, the company is constructing terrace houses under the Rossa Terrace and Plumeria projects in Johor Bahru.
UDA group managing director, Datuk Ahmad Abu Bakar said this is the first time UDA has taken such a financing facility even though its balance sheet is strong.
“We intend to keep our cash and use it to purchase new land plots as part of our capital expenditure,” he added.
With a current land bank of 1,000 acres nationwide, the company will set aside RM200 million to RM250 million each year for land purchasing.
He said that with the proven track record in building townships, mixed residential developments, condominiums and high-end residences for different market segments, UDA has the potential to be a dynamic organisation, positioned amongst the nation’s top ten property players and asset management in the next five years.