PETALING JAYA: Bintai Kinden Corp Bhd has proposed a diversification into the property development and management business and intends to undertake two mixed property development and management projects – Holistica Melaka and Holistica Penang.
At present, Bintai Kinden and its subsidiaries are principally involved in the provision of specialised mechanical & electrical (M&E) engineering, provision of turnkey, structural, civil, infrastructure project and project management, concessionaire arrangements and trading activities.
The two mixed property development and management projects that it plans to undertake will be designed to provide a holistic living environment, with a focus on providing comprehensive healthcare and wellness services as well as assisted living for better community lifestyle.
Holistica Melaka is an integrated holistic and wellness themed project which will comprise wellness condotels, wellness condominiums, retirement and lifestyle apartments, wellness club as well a medical specialist centre measuring 4.744 acres, with a gross development value (GDV) of RM558 million.
Holistica Penang is a 21-storey lifestyle condotel in George Town, Penang, measuring 0.598 acres, with a GDV of RM83.7 million.
“The mixed development projects are expected to contribute 25% or more of the net assets and/or net profits of the Bintai group. As such, the board proposes to seek the prior approval from the shareholders of the company at an EGM to be convened for the proposed diversification.
The board intends to continue with the group’s existing business activities, Bintai Kinden said.
The expansion of Bintai Kinden group’s property development business segment is part of the company’s strategy of diversifying into other industries with strong growth prospects instead of depending solely on its existing core M&E engineering business. The group has past experiences and expertise in undertaking and completing various construction of property development and related projects across a span of 36 years.
The board believes that the mixed development projects would contribute positively to the future earnings and improve the financial position of the Bintai Kinden group. The additional revenue contribution from the mixed development projects is expected to enhance the group’s profitability and returns on shareholders’ funds.
Bintai Kinden also proposed a private placement of up to 30% of its existing issued shares at an indicative issue price of 52 sen per share, to independent investors to be identified later, to raise RM58.43 million. The proceeds will be used mainly for the mixed development projects.
The proposals are expected to be completed by the second quarter of 2021.