SERI KEMBANGAN: Country Heights Holdings Bhd (CHHB), which reported losses in the past two quarters, is looking to sell some of its properties to resolve the group’s cash flow issue.
Speaking to reporters after its AGM today, chairman Tan Sri Lee Kim Yew said the group is contemplating a 25% discount on the valuation of the properties to reduce its RM130 million of debt.
“The discount is the maximum allowed for the board to offer without running afoul of the Malaysian Anti-Corruption Commission. At the moment, we are looking to offer the discount for Country Heights Damansara,” he explained.
Besides monetising its assets, CHHB is exploring other avenues to resolve its cash constraints issue by issuing medium-term bonds, refinancing some of its debts and bringing in some foreign investors. However, Lee did not elaborate further.
The group is also planning to raise RM2.5 billion of capital expenditure to fund its business operations.
Speaking of plans to issue its own cryptocurrency to be known as “Horse Currency”, Lee said the group is awaiting further guidelines from the Securities Commission governing the issuance of blockchain tokens.
“Going into blockchain is another way to raise capital but the rules are not yet in place,” he said.
CHHB will also be looking into e-wallet and point-of-sale system to go along with its blockchain offering.
For the first quarter ended March 31, 2019, the group reported a net loss of RM872,000, an improvement from the RM2.4 million loss recorded for the same period in the previous year.
On the property front, CHHB is shifting its focus away from high-rise projects and development in the Klang Valley.
“This year we are looking to develop landed properties outside the Klang Valley, based on a two-storey terrace house concept anchored around a sports facility,” Lee said.
Instead of large township development, CHHB is now focusing on pocket development with land size of around 50 to 60 acres. The units of the planned development are expected to be priced between RM350,000 and RM500,000 each.
Meanwhile, Lee disclosed that the first phase of Grand Wellness Hub has been completed and the remaining three phases will be completed within the next three to five years, with a gross development value of RM1.5 billion.
