Tiger Synergy sees Telaris Gombak as turning point

KUALA LUMPUR: Tiger Synergy Bhd is developing an affordable condominium named Telaris Gombak for Prosma Bhd’s rent-to-own (RTO) scheme, which is expected to generate some RM30 million profit to the group over three years.

Managing director Shirley Tan Lee Chin said the property development segment has not been contributing to the group’s performance as it has not launched any new projects in the last two years, but believes that Telaris Gombak will be the turning point for the group.

“It signifies Tiger Synergy’s commitment in embarking on a turnaround plan to stay on course with a strategic focus in delivering high quality affordable homes,” she told reporters at a signing ceremony yesterday.

“The total gross development value (GDV) stands at an estimated RM100 million and we believe this will help Tiger Synergy to turnaround, which could contribute positively to the earnings and enhance profitability of the group,” she added.

The group, whose net loss widened to RM8.09 million in the third quarter ended March 31, 2017 from a net loss of RM2.15 million a year ago, expects the property development segment to begin contributing again for the financial year ending June 30, 2018.

“In our planning, about 40% of our total group projects will be affordable homes, ranging from RM400,000 to RM500,000. For this year, Telaris Gombak is one and we have another one coming, in the planning stage,” said Tan.

The group has about nine projects in the pipeline with total GDV of RM2 billion, to be launched over the next five years. Tan said it has about 50 acres of land mostly in the Klang Valley as well as some joint ventures with landowners in areas like Shah Alam and Kuala Lumpur.

Yesterday, the group’s wholly owned subsidiary Tiger Synergy Timber Sdn Bhd signed a memorandum of agreement with Prosma to develop Telaris Gombak on 5.5 acres.

The project comprises 180 units sized at 1,000 sq ft per unit and eight commercial shoplots to be developed over three years, after which it will be sold en bloc to Prosma. The group expects to enter a sale and purchase agreement with Prosma in September or October this year.

The project is aimed at young earners as the units are valued at about RM400,000 to RM500,000 each. The rental rate is RM2,000 to RM2,500 per month and eligible applicants will rent the units for 30 years under Prosma’s RTO scheme.

Prosma has a strategic collaboration with Sekretariat Komuniti Prefer Malaysia (SKPM), a community created on the back of a private initiative to assist the government in providing residences to 30% of the population.

SKPM is under the consent and support of the Finance Ministry and the Domestic Trade, Co-operatives and Consumerism Ministry as the scheme owner, and has been appointed to manage 50,000 houses under the RTO scheme.

SKPM chairman Datuk Paduka Ab Malek Ranting said the scheme aims to fill a gap in the market as it is targeted at those who earn RM5,000 and above, whereas PR1MA is targeted at those who earn RM3,000 and below. Houses under Prosma’s RTO scheme are valued at RM300,000 to RM500,000.

Prosma CEO Zamri Abdullah said it has approved some 3,000 applicants to date and has allocated up to RM1 billion to acquire homes for the RTO scheme this year. It has another 71,000 applicants to interview for the scheme.

He said successful applicants will be signing their contracts from next month and the first batch of completed homes, comprising 240 units in Perak and 133 units in Penang will be delivered by year-end.