FOR A PROPERTY DEVELOPER

Client

A PUBLIC-LISTED PROPERTY DEVELOPER IN MALAYSIA

Products & Services

• Operational & Financial Due Diligence
• Transformation Strategy Planning
• Corporate Finance Strategy
• Overseas Expansion & Market Entry
• Organisational Restructuring
• Financial Modelling

Description of Project

Client

The client is a public-listed company, and one of Malaysia’s top property developer It is the flagship company for township and property development businesses of a Malaysian sovereign wealth fund. 

Background

The company’s core competencies are in macro township development; high-rise residential, commercial, retail and integrated developments. The company currently has annual turnover of over RM 1 billion, asset value of over RM 10 billion, and a total workforce of close to 900 people spread across Klang Valley, Johor and Australia.

Challenges & Expectations

Since 2019, the company has been experiencing weak business performance. This was reflected in their negative PATANCI for 7 consecutive quarters, net loss of more than RM 50 mil, declining operating profits, depleting cash flow and negative ROE.  Their share price has also been falling significantly for more than 90% in just 9 months.

In view of the deteriorating business results, the management seek external helps to draw up a 5 years business & transformation plan to turnaround the company into profitability

Our Role on the Project

Scope of Services

We have put together a strong team made up from seasoned real estate practitioners and construction project managers who are well-versed in the property development value chain.

The services include a 360° assessment on the company’s current performance to ascertain their current standing, and a holistic strategy formulation process to devise the transformation programme.

Solutions / Outcomes Delivered

The team had completed a thorough due diligence on the operating performance by investigating the various facets of the business, including the process, org structure, line of authority, financials, projects, JV business, landbanks, retail assets as well as the branding & marketing. 

Our final deliverable included a comprehensive Transformation Programme comprises 9 focus areas & 37 initiatives with detailed action plan over the next 8 years. This comes with a detailed financial forecast which has share price simulation & funding strategy to finance the transformation efforts.