First of all, I would like to take this opportunity to thank my fellow Board members for appointing me as Independent Chairman of Hunza Properties Berhad.
I would also like to thank my fellow shareholders; for re-appointing me as director in prior years & re-electing the existing and newly appointed directors in the previous AGM.
My sincere thanks is also extended to the former Board members, Dato’ Seri Khor Teng Tong, Dato’ Ooi Lay See and Mr Ong Lye Seng for their contribution to the Group. They have all played their major roles untuk membawa Hunza ke tahap ini. A very strong foundation. Saya ini penuh keyakinan your new Board will continue to build upon this success.
On behalf of the Board of Directors, it gives me pleasure to present the Annual Report and Audited Financial Statements of your Company, Hunza Properties Berhad, for the financial year ended 30 June 2014.
A reading of our accounts show that assets held under “Property Investments” and the related revenue (as per Segment Reporting), have increased substantially over the last couple of years. Hunza had been concentrating efforts to construct and tenant our Gurney Paragon mall and office tower. This is simply because at a cost of close to half-a-billion Malaysian Ringgit, this represents our biggest investment.
Now that it is up and running, we will re-new our efforts to develop our land banks as well as those under project management – Juru and Alila II.
Whilst all these are going on, we also reported that our on-going 700-acre Bandar Putra Bertam project is progressing smoothly, and that we are continually working to re-settle the 800+ squatters on our Bayan Baru Land – also for this, work has been progressing well too.
Hunza is in a strong cashflow position. We receive strong support from financial institutions to finance our projects/ to fund our working capital. This is due, in no short measure, to the reliability and trustworthiness of your Company. For example, our Gurney Paragon Mall is jointly financed by OCBC and Great Eastern Life
Assurance (Malaysia) Berhad (“GE”) for RM300 million, 10 year tenure. GE’s portion, which is slightly more than half of the total, carries an interest rate, fixed @ 5.25% p.a., a decent rate indeed.
Moreover, the 2 new projects, Alila II and at Juru are on land which are currently un-encumbered. Furthermore, in the case of Alila II, as the land was acquired quite some time ago, we penuh keyakinan this project will earn very decent returns. For the Juru land, we have booked in a quite significant amount of revaluation gain so far as we have categorized this land under “property investment” previously.
Also in this new year (financial year 2015), we have a new stream of recurring income for our “Property Investment” segment. The purpose built hypermarket (on a 15 year lease to Mydin) in Bertam opened for business on Malaysia Day, Sept 16th, 2014.
The Company carried out a private placement corporate exercise during the financial year which the Company raised RM32 million via the issuance of 18.1 million ordinary shares. This exercise was completed on 31 July 2013. The proceeds were utilised for repayment of bank borrowings and working capital.
During the financial year 2014, approximately 31.8 million shares have been issued by virtue of exercise of warrants. This is close to 73% of the total warrants issued in 2010. To us, this represents continued confidence, leading to investment, in Hunza.
It was a special year for the Company as many memorable events happened. Hunza’s first mall & office tower was opened during the financial year; it signified Hunza’s venture into the real property investment segment. Consequently our corporate office moved to our new home, Hunza Tower.
We had gone on record to say that we will be bringing established retail names (internationally and /or in Kuala Lumpur) to Penang. Ladies and gentlemen; my Board members and I believe that we have been successful in this. A reading of our mall’s tenant-list will attest to this. This also extends to our office tower where international names are now calling it home.
There is no dividend proposed for this financial year. You will appreciate that we now have to conserve & reserve funds for our next mega project in the 42+ acre Bayan Baru. We believe that whilst Gurney Paragon has cemented our standing in the local scene, our Bayan Baru integrated development will thrust us on to the national level. In tandem, we also believe that it will earn Hunza a very decent return on our investment.
However, after having said that, you may have noticed that lately, we have escalated our share buy-back exercise. Our NTA per share is RM3.39 (as per quarterly report @ 30.6.2014) while the share price (RM1.94 - closing price @ 8.10.2014) is significantly lower than the NTA. The Company has available fund, hence, we treat Hunza share as a “very worthwhile investment”.
Even now with the new board members, I want to re-assure everyone that your Board remain steadfast to our Corporate Mission & Core Values. On behalf of the Board, I would like to express our heartfelt gratitude to our customers, business associates and shareholders for their invaluable support and confidence in the Group. Here, let me echo my predecessor - Our basic philosophy with regards to “outside” is simple – our customers come first. We eat, live and breathe “customer satisfaction”. Our commitment together with
the efforts of our team and the support of our customers are the keys to Hunza's successes.
Tahniah dan Syabas all round – our St. Jo’s / Gurney Paragon Mall won these awards:-
- The Association of Consulting Engineers Malaysia (“ACEM”) Gold Award of Special Merit 2013 (this is the highest award given by ACEM for projects);
- FIABCI Malaysia Property Award 2013 (Heritage Category);
- Silver Award at FIABCI’s World Prix D’Excellence Awards 2014 under the Heritage (Restoration / Conservation) category; and
- The “First Shopping Mall Integrated with a Heritage Building” in The Malaysia Book of Records.
Beribu-ribuan terima kasih to all who have berganding-bahu and bertungkus-lumus to make our vision a successful reality.
Tahniah dan Syabas to our past Chairman – he was made a “Dato’ Seri” in conjunction with the Governor of Penang’s birthday this year.
In closing, once again our heartfelt appreciation to our 3 past directors. In particular our past founding Chairman Dato’ Seri Khor Teng Tong, who had contributed tremendously to what Hunza is today. And in the same breath, I verily believe that the management team, albeit new, but with considerable experience within and without Hunza, will grow Hunza to greater heights given the underlying strong foundation.
I look forward to catching up with you at our forthcoming AGM.
Datuk Zubir Bin Haji Ali Independent Chairman