Pasukhas aims to launch flagship property project with GDV of RM338 million by September

Pasukhas Group Berhad aims to raise at least RM10 million or more from a proposed rights issue with warrants to fund a mixed development known as Yayasan project in Kuala Lumpur and a factory project in Perak.

The group is targeting to launch the project by September this year under the proposed name of Lushwoods Towers and Residences, it said in a filing with Bursa Malaysia today.

The funding requirement for Yayasan, which has a gross built-up area of about 644,000 square feet (sq ft) and a net floor area of around 355,000 sq ft is estimated to be RM257 million, it said.

Pasukhas said that any shortfall in the funding requirement for Yayasan is expected to be met via progressive sales billings, internally generated funds, bank borrowings, and/or future fund raising exercises.

“The exact sources of funding cannot be determined at this juncture as it will depend on, amongst others, the actual amount of proceeds to be raised from the proposed rights issue with warrants, as well as the availability and suitability of other funding options at the relevant time,” it said in the filing.

Flagship project

Yayasan is the group’s flagship property project since it diversified into property development in August 2018.

Its wholly-owned subsidiary Pasukhas Development Sdn Bhd (PDSB) had on June 9, 2017, entered into a joint venture agreement (JVA) with Yayasan Veteran Angkatan Tentera Malaysia (YVATM) to develop the project on 1.27 acres of state leasehold land off Jalan Tun Razak.

Under the JVA deal, Pasukhas will pay RM15.45 million for the land premium and RM2 million cash to YVATM. The latter will also be entitled to 72,000 square (sq) feet (ft) of partial office space and function rooms in the project.

Pursuant to the JVA, PDSB will undertake the project as the owner and developer.

Yayasan comprises a 32-storey serviced apartment block with 224 units, built-up ranging from 640 sq ft to 4,400 sq ft, an eight-storey podium with two floors of a commercial centre (net floor area of about 12,000 sq ft), and 607 car park lots.

It also consists of nine-storey offices (net floor area of about 93,000 sq ft), with facilities that include a multi-purpose hall, kindergarten, gymnasium, workers’ recreational space, and medical treatment room.

According to the filing, Yayasan has an estimated gross development value of RM338 million.

Pasukhas said the project is targeted to be completed by the fourth quarter of 2023.

The group said it obtained the development order (DO) for the project in December 2020.

PDSB is in the midst of preparing a building plan to be submitted to City Hall, it said.

Pasukhas said it hoped to obtain the building plan approval in the second quarter of this year and launch the project by September.

It added that the proceeds in excess of RM10 million under the minimum scenario in the latest fund-raising exercise will be utilised to part-finance Yayasan and the factory project.

Pasukhas’ wholly-owned subsidiary Pasukhas Sdn Bhd had on January 27, 2021, accepted a letter of award from Fintec Glove Sdn Bhd to build a turnkey glove-manufacturing factory in Kinta.

The group said it intends to utilise proceeds of RM9.3 million under the minimum scenario or up to RM31.8 million under the maximum scenario to part-finance the costs of building the factory.

Attractive mix of properties poised to attract investors, says Pasukhas

Pasukhas said that given the strategic location of Yayasan and the attractive mix of residential quarters and commercial lots, it believes the project will appeal to both local and international home purchasers and investors.

It said buyers of commercial spaces will benefit from both the built-in residential clientele and foot traffic from users of the office spaces.

Moving forward, the group intends to build on its property development capabilities as part of its continuous effort to improve its financial performance.

Pasukhas said that it will continue monitoring the latest developments in the property market with the aim of exploring opportunities, including via the formation of strategic alliances or JVs in the property development space.

The group said that it plans to also work with various property developers and project owners in Malaysia to secure additional mechanical and engineering contracts for commercial buildings, mixed developments, and other specialised projects.

Meanwhile, Pasukhas said it is actively pursuing potential sand buyers from mainland China and Hong Kong for its wholly-owned unit Pasukhas Products Sdn Bhd (PPSB).

PPSB had on September 22, 2020, entered into an agreement with BB Energy Sdn Bhd for the exclusive rights to access, extract and dredge marine sand (largely used in land reclamation) at Sungai Miang in Pekan, Pahang, for subsequent sale, distribution, and/or export purposes.

The contractual term of the agreement is for 12 months with an option to extend for a further 12 months.

Pasukhas noted that the operation of the sand mining business is expected to commence in the second quarter of this year, and is anticipated to provide the group with an additional stream of revenue moving forward.

Source: NST