Sin Chew Daily, 23 Jun 2011 – To launch more new projects worth RM1billion Dijaya Corp to unveil a better financial year over last year

Sin Chew Daily, 23 Jun 2011

(Petaling Jaya, 22 June 2011): Dijaya Corporation Bhd (DIJACOR, 5401 property development group) plans to launch three new projects this financial year ending 31 December with a total gross development value (GDV) worth more than RM1 billion. The group had in the last financial year launched projects with GDV worth RM800 million, part of which the income will be recognised in the current financial year, potentially reflecting better performance this year compared to the last.

Dijaya Managing Director said that the property market in Malaysia is positive this year and he believes that it will still be good next year. However, after the middle of next year, the market will depend on how well the US and China economies are managed.

Cautious Ventures into Vietnam and India Markets

Dijaya's MD expressed that though they are concentrating on the excellent property market in Malaysia now, they are also cautiously tapping into other markets such as Vietnam, India and other countries.

He said, “Recently we have purchased lands in Subang and Kampar worth RM390 million. If we are to add up both these parcels, our total land bank will increase from 140 acres to about 240 acres and the total property projects to be launched by us will increase from RM8.1

billion to RM10.7 billion.”

“We will launch Tropicana Sungai Long, a residential project consisting of bungalows and semi-detached bungalows in July; this is worth almost RM200 million. On the 57-acre land in Tropicana Avenue, which is a mixed development project, commercial centres and apartments will be launched in the final quarter. The first phase of the plan is valued at RM9 million and the total project is valued at about RM500 million.

The Tropicana Danga Bay project at Iskandar, Johor, is being developed on a 37-acre land with a property development plan worth RM600 million.

Dijaya had earlier mentioned that the group planned to launch the above two property projects worth RM3.5 billion in the next two years. Dijaya would continue to launch more new projects at their 60-acre land in order to achieve their target of RM400 million next year.

Dijaya's MD revealed that Dijaya would continue to look for more land in Selangor, Penang and Johor and hope that this year they are able to acquire some new land.

In April, Dijaya embarked into the hotel business, partnering with the famous hotel and leisure company Starwood Hotels & Resorts Worldwide Inc to develop a six-star hotel and residential apartments valued at around RM705 million on a piece of land located in Jalan

Ampang, Kuala Lumpur, which was formerly the home of Chinese millionaire Choy Chen Mook.

He said that the above is Dijaya’s first move into the hotel industry and that the group is aggressively looking for more land to plan for other hotel and resort development projects.

Disposal of Shares Must Be Carefully Considered to Avoid Anxiety

Referring to whether the major shareholder of Dijaya Group Chief Executive Officer, Tan Sri Tan Chee Sing, is considering disposing some of his 67% shares to the market, he said the company will have to discuss and analyse this issue carefully, and whether more shares will

be disposed to the market or not will have to depend on Tan Sri Dato’ Danny Tan Chee Sing personally.

He said one must be very careful and certain before doing so as any move will cause unnecessary anxiety and doubt among the existing shareholders. They will be alarmed as to why the “Big Shareholders are disposing their shares”, therefore Dijaya group must consider this very carefully.

Over the past two weeks, Dijaya announced positive news pushing up the share price; besides announcing their venture into the hotel industry, they announced the development plan for the hotel over the next two years valued at RM3.5 billion.