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Sanbumi Ventures Into Property Sector
Malaysia Daily Bulletin | 05 October 2015
  • Tourism-focused Sanbumi Holdings, which has been loss-making since 2006, is cautiously optimistic that its new diversification into property development with a planned 37-storey serviced apartment project in Bukit Mertajam, would improve its earnings prospects.
  • The firm’s shareholders have approved the new business venture at the recent extraordinary general meeting. While diversification is in place, the group will continue with its core business of tourism activities, and restructure some companies.
  • Plans to venture into property will reduce the company’s reliance on its core business in the long run, particularly after its business took a blow following the two major Malaysian airline tragedies last year.

Significance: The serviced apartment project has an estimated gross development value of RM240 million is expected to take off in 2H16 and is projected to contribute to earnings in the next four years. Shareholders have also agreed to a private placement to raise RM5.8 million to finance the preliminary development cost.

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