Property developer, Hua Yang Bhd, plans to raise RM100 million capital to fund its land acquisition activities this year.

Chief executive officer Ho Wen Yan said the amount was three times the size of capital expenditure (capex) spent last year for buying land.

“With the RM100 million capex, we are hoping to generate RM800 million to RM1 billion in gross development value,” he told reporters at a media luncheon here today.

The developer is eyeing to acquire up to 300 acres of land in
Penang and Sabah for township development.

However, the fund-raising exercise was still being discussed and has not been determined yet, Ho said.

To date, Hua Yang has a total landbank of 780 acres in Johor, Perak, the Klang Valley and Negeri Sembilan worth RM2.4 billion.

On the company’s outlook for this year, he said Hua Yang is
expected to remain strong despite the softening demand for properties in some areas in Kuala Lumpur city centre and Klang Valley.

“Generally, affordable housing, which is our segment, will remain
strong in the upcoming year,” he said.

Among the factors that would contribute to Hua Yang’s performance in 2012 are its ability to maintain low cost structure and the location of its developments, which are not in the high-priced prime areas.

In another development, Ho said the company is expected to declare a better dividend payout this financial year ending March 31 compared to 7.5 sen last year.

“We don’t have a fixed dividend policy but typically we return up to 25 per cent of net profit back to shareholders,” he said, adding the absence of a fixed dividend policy provides the company the flexibility to grow. — Bernama

SOURCE: Business Times