Naim Sells Land to Boost Working Capital and Reduce Debt
Strategic Move to Enhance Financial Stability and Future Growth
KUCHING: Naim Holdings Berhad (Naim) recently announced the sale of 108.8 hectares of land in Kuching for approximately RM 223.38 million. This land, acquired about 16 years ago, has been sold as part of a strategic initiative to inject working capital and reduce the company’s debts, which stood at around RM 437 million as of March 31.
Ensuring Long-Term Sustainability
Naim’s decision to sell this land is a testament to its ongoing commitment to ensuring the long-term sustainability of its business operations amidst the current tight property market. The company aims to realize gains and unlock the value of its investment after holding the land for 16 years.
Focus on Affordable Housing
Aligning with Government Efforts
In a statement, Naim emphasized its shift in focus towards developing affordable homes, aligning with the state government’s efforts to provide affordable housing for the rakyat. Naim aims to develop around 10,000 units of affordable housing, primarily in Miri, utilizing the remaining land in its portfolio.
Commitment to Stakeholders
Naim reassured its stakeholders that the land sale was conducted with the utmost respect for its core corporate values and a clear focus on the company’s future. The property developer highlighted the importance of making prudent financial decisions to support continued success and resilience.
“We recognize the importance of making prudent financial decisions that support our continued success and resilience,” the company stated.
Strengthening Financial Foundation
Naim is committed to using the proceeds from this sale to fortify its financial foundation. This move will allow the company to continue serving its customers with excellence and explore new opportunities for growth, especially in Miri, where the company started its journey.
Market Trends and Comparisons
Naim’s decision to divest land assets aligns with recent trends in the property market. Other prominent developers, such as Eco World Malaysia and UEM Sunrise, have also been divesting land assets to strengthen their financial positions, as evidenced by their regulatory announcements on Bursa Malaysia.
Looking Ahead
Future Developments in Miri
Naim’s shift towards affordable housing development marks a significant strategic pivot. With plans to develop 10,000 affordable housing units, the company is set to make a substantial impact on the housing market in Miri and beyond.
Financial Prudence and Growth Opportunities
The sale of the 108.8 hectares of land not only helps in reducing Naim’s debt but also provides a substantial boost to its working capital. This financial prudence will enable Naim to explore new growth opportunities and continue its legacy of excellence in the property development sector.
Commitment to Excellence
Naim’s commitment to excellence remains unwavering. By focusing on strategic financial decisions and aligning with market trends, the company is poised for a future of sustainable growth and success. This land sale is a crucial step in ensuring that Naim remains financially robust and capable of meeting the evolving needs of its customers and stakeholders.
Conclusion
Naim Holdings Berhad’s sale of land in Kuching represents a strategic move to enhance its financial stability and focus on future growth. By aligning with government initiatives and market trends, Naim is set to develop affordable housing units that will benefit the community and ensure the company’s long-term success. This decision underscores Naim’s commitment to financial prudence, stakeholder assurance, and continuous excellence in the property development industry.
