SUBANG JAYA: Bolton Bhd, one of the oldest property developers in the country, plans to dispose of its retail assets to focus on property development, its chief said.
The company currently owns the Langkawi Fair Shopping Mall, situated at the south eastern tip of Langkawi Island.
Sprawled on a 3.45ha site, the mall is the largest shopping centre in Langkawi and it is estimated to be worth about RM45 million.
“The mall is giving us reasonable rental yields. But at the right time, we will dispose of the asset at a good price. We are not big enough a developer to keep property investments,” said Bolton executive chairman Tan Sri AzmanYahya.
Bolton currently has operations in three segments: property development; property investment (which includes property management and maintenance); as well as construction and quarry operations.
The company, set up in 1964, made its name with the 105ha township development in Taman Midah – the pioneer housing estate in Kuala Lumpur.
As part of its business rationalisation, Bolton disposed of its 20-storey Campbell Complex in Kuala Lumpur for RM50 million in 2010.
The rationalisation included selling non-core assets and investments that did not yield reasonable returns, and re-focus on property development.
For the first quarter ended June 30 2012, Bolton registered a pre-tax profit of RM9.2 million on revenues of RM75.1 million, and over 90 per cent of the earnings was derived from property development.
Azman said Bolton plans to also sell The Wharf lifestyle retail mall in Taman Tasik Prima in Puchong, Selangor.
The mall, which is under construction, is part of a bigger development called The Wharf, which comprises three serviced apartment blocks and an integrated complex with boutique showroom offices and flexi suites.
The three-storey neighbourhood mall has a gross floor area of 500,000 sq ft and is worth about RM200 million.
“We intend to sell the mall en bloc to a major retail group. Negotiations are ongoing,” Azman said.
The mall is expected to open in the second half of next year.
Source: Business Times Dated: 10/09/2012
