Malaysia Times Square: Project's Total Cost MYR1.85B

Monday September 29, 2:23 PM

KUALA LUMPUR (Dow Jones)--Malaysia's Berjaya Times Square complex is expected to be profitable with around 25 million ringgit ($1=MYR3.80) of net profit this fiscal year ending April 30, 2004, owner Vincent Tan said Monday.

Tan is a substantial shareholder of several listed entities among the Malaysian conglomerate Berjaya Group Bhd. (P.BGP)

"It will become a wholly-owned subsidiary of another listed company," he said. He declined to name the company, saying he will do so at an appropriate time.

Further, he said the Times Square complex will have to pay out MYR270 million in late delivery charges. Rather than pay cash, he is proposing to settle the charges by issuing shares once the complex is transferred to the listed company.

"This project (already) owes the bank 700 million (ringgit)," he said, noting that he would prefer not to have to pay out further cash.

Indeed, Tan said that his group is considering issuing a domestic bond earlier next year to finance the MYR700 million.

He said the bond issue will likely be ready in the early part of 2004.

For now, he said the complex is likely to have full occupancy within six to nine months.

The complex will retain 60% of the real estate space available and has already sold around two-thirds of the remaining 40% for around MYR900 million.

The original cost of the building was to have been MYR1.5 billion but due to delays caused by the Asian financial crisis, the total cost of the project finally came to MYR1.85 billion.