Tile maker and property developer Seacera Group Bhd would build holiday villas in Kuantan, Terengganu, valued at RM156.46 million, which could boost the company’s finances.

Seacera is a PN17 (Practice Note 17) company. After missing a payment of principle and profits to AmBank Islamic Bhd, it was placed under PN17 status in April 2019. At the time, it owed AmBank RM22.15 million.

The company was given five months from December, 2021, to April 25, 2022 to present a plan to Bursa Malaysia to improve its financial situation.

In a January stock exchange filing, it said that the Board will create and develop initiatives to improve the PN17 status, as required by the listing requirement.

If necessary, the company said it will request an extension from Bursa Malaysia to let it normalise its financial situation.

In the fiscal year 2021, Seacera had revenue of RM39.4 million and a net profit of RM2.34 million.

The company is collaborating with Ikhlas Al Dain Sdn Bhd, an indirect wholly-owned subsidiary of Mlabs Systems Bhd, to build holiday villas on Malay Reserve Land in Kemaman owned by Ribuan Bakat Sdn Bhd.

Its wholly-owned subsidiary, Seacera Builders Sdn Bhd (SBSB), announced in a recent stock exchange filing that it had entered into a joint venture (JV) agreement with Ikhlas on March 25.

Ribuan Bakat granted Ikhlas sole, exclusive rights to develop various plots of the Malay Reserve Land in August 2021, according to Seacera.

SBSB will pay Ikhlas RM11.5 million in the form of units produced on the plots to secure the development rights under the JV agreement.

According to Seacera, the JV will allow the company to boost its property development revenue.

After receiving approvals from Ikhlas and Ribuan Bakat, Seacera indicated it could seek funding from any reputable financier to help fund the project’s development.

Source: NewStraitsTimes,  April 1, 2022