Mahajaya not raising prices
The Star 21/04/2004

MAHAJAYA Bhd does not plan to raise the selling price of its future property projects despite an increase in building material costs.

Managing director William Tan Ming Wai said Mahajaya could keep its costs low because it was an integrated property construction and development company.

As such, a rise in steel prices was expected to have negligible impact on Mahajaya, he said at a media briefing in Kuala Lumpur yesterday.

Mahajaya will be quoted on the Bursa Malaysia main board on April 27 after completing a reverse takeover of Hotline Furniture Bhd.

After the exercise, Mahajaya will have a total of 224.9 million issued and fully paid-up RM1 shares listed on the stock exchange. The reference price for Mahajaya shares has been set at RM1.

A total of 49 million 3.5% five-year irredeemable convertible unsecured loans stocks (Iculs) were issued as part of the reverse takeover. The Iculs would not be listed on Bursa Malaysia.

Tan said Mahajaya, which has more than 30-year record in civil engineering and construction and property development, would continue to focus on building affordable houses in the Klang Valley and Johor Baru.

''Property will remain our core business after the listing. We are poised for growth with a land-bank of 1,275 acres on in-demand locations, well spread over various segments like affordable homes, mixed-use and resort-type concept development,'' he said.

The group's land-bank of 1,279 acres, with an estimated gross development value of RM1.8bil, is earmarked for development in the next four to six years, Tan said.

For its financial year to June 30, 2003, the group reported a profit after tax of RM22mil on turnover of RM143mil.