July 06, 1999
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| July 06, 1999 | atimes.com | |
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| Southeast Asia Malaysia's Danaharta to consolidate hotel properties KUALA LUMPUR - Pengurusan Danaharta Nasional Bhd., the Malaysian agency charged with turning around the non-performing assets of the financial institutions, may consolidate hotel properties under its management by streamling management, creating a brand name and disposing of a chain of hotels through sales or through a real estate investment trust structure. ''This is significant as most of the hotels under Danaharta are small and medium-sized single hotels operating all over the country, some are yet to be completed and most fall under the two- and four-star category,'' Azman Yahya, managing director of Danaharta, said at the 1999 National Housing Summit here Monday. However, he did not reveal the number and value of the hotels now under NPLS acquired by Danaharta. Azman said that as of June 30, 1999, the asset management company has carved out over RM35 billion gross value of non-performing loans, mostly collaterialized by property. This has indirectly prevented a total collapse of the sector in an environment of too many sellers chasing too many buyers. ''The carved out NPLs from the banking system have mitigated the fire sales for closures of property assets, which could have flooded an already depressed market,'' he added. On the breakdown of property assets on Danaharta's NPLs, he said development constituted 58 percent, industrial 12 percent, retail space eight percent, residential two percent, agricultural land four percent, office space nine percent and hotels seven percent. On another note, Azman said the conversion of assets into property unit trusts enables property assets to be converted into a more liquid, i.e., unitized, form. Units in property trusts can be released to the market progressively, through a staggered exit that could aid cashflow timing. ''By introducing strategic partners into the trust, we can also infuse expert property management and investment skills,'' he added. ''It would also encourage an infusion of expert property management skills and professionalism to be developed in the market as property and investment transactions take place." Azman said the institutionalisation of more real estate and property would lead to greater transparency in the property sector, where property trusts are continually priced in the market place if listed and recurring benchmark transaction prices are set when the trust buys and sells assets. (Asia Pulse/Bernama) | |||||||||
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