KUALA LUMPUR: Nadayu Properties Bhd, formerly known as Mutiara Goodyear Development Bhd, will use part of the cash from disposing of its non-core assets to buy land in the Klang Valley.

Yesterday, shareholders approved Nadayu's plan to dispose of four office lots and 3,087 car-park bays in Selangor to a company, called Park Access Sdn Bhd, for RM42.6 million.

Nadayu executive chairman Hamidon Abdullah is happy with the stakeholder approval as it will free up cash for the company, which should help it focus on property development.

"We will be able to buy more land now and expand our property development activities. We have pockets of land in Sunway, Melawati and Cyberjaya. If we want to spread our resources, we will look at land nearby these areas," Hamidon said after the company's extraordinary general meeting (EGM).

Hamidon aims to grow the company to become a niche developer, focusing on medium to high-end developments in the Klang Valley and Penang.

"As we move forward from one development to another, we will look for more innovation and incorporate green elements. We want to ensure our projects have elements of sustainability, hygiene and security," Hamidon said.

Nadayu has three projects worth RM1.5 billion for launches in Bandar Sunway, Cyberjaya and Bukit Gambir in Penang, starting from the current quarter.

On rising raw materials prices, Hamidon said the company will look into the matter to ensure its profit margin does not erode.

"Sometimes we have to bite the bullet to give the same template and that is when our profit margin will erode. So we have to build in volume and be mindful of what we provide," he said.

Meanwhile, Hamidon said he has no plans to sell Nadayu or merge with other developers despite being approached by several parties.

"We are not keen at this point. We are still in the process of adding value to the company and building the brand name," he said.

The company changed to its current on June 20.

SOURCE: Business Times