BDB Land, Maybank ink RM280 mil financing deal

BDB Land Sdn Bhd, the property development arm of Bina Darulaman Bhd, has inked a RM280 million financing deal with Malayan Banking Bhd (Maybank).

It said RM230 million was for a Term Loan Financing Facility and RM50 million for Cash Line-i.

Bina Darulaman Group Managing Director Datuk Izham Yusoff said the Term Loan Financing Facility was for the construction cost and development expenses for the re-development of Bandar Darulaman (Darulaman 2.0) in Jitra, Kedah.

"The financing facility will largely enhance our capability to roll out and expedite the next phases of Darulaman 2.0," he said in his speech at the signing ceremony between BDB, Maybank and OCBC Al-Amin here, today.

Darulaman 2.0, which boasts a gross development value (GDV) of RM858 million, is made up of the Taman Tunku Intan Safinaz‎ township projects, a new golf club complex and condominium, Dataran Darulaman, Darulaman Hills and the upgraded Darulaman Park.

The signing ceremony was witnessed by Kedah Mentri Besar ‎Datuk Seri Mukhriz Mahathir.

In his speech, Mukhriz said the Kedah state government aims to build 40,000 houses for all income groups by 2018.

"To date, 28,081 units have been approved and are currently under various stages of construction.

"Efforts are being made to provide more low cost and affordable housing for the people. Demand for these houses in Kedah is much higher compared to other states as a large number of the people are in the low income bracket," he added.

Meanwhile, BDB Infra Sdn Bhd, Bina Darulaman's construction and quarry arm, has signed a RM40.4 million agreement with OCBC Al-Amin Bank Bhd for an Islamic Financing Facility.

The money will be used to finance its new premix plant and quarry facilities at Sungai Ular, Kulim, and state maintenance projects encompassing six districts in Kedah.

BDB Infra had on June 1, received a letter of award from the state government to undertake road maintenance over three years from June 10, 2015, in six districts for a contract sum of RM209.9 million.

Aside from the state road project, Izham said BDB Infra is also expected toparticipate in the upgrading of irrigation canals under the Muda Agricultural Development Authority‎ (Mada).

This is scheduled to take-off in the third quarter this year upon completion of the land acquisition by the government.

Izham said next year, the group estimates a total gross development value (GDV) of RM193 million from the development of 611 units of affordable apartments and houses.

"In 2017, a GDV of RM143 million is expected from the development of 289 housing ‎units in the TTIS township," he added.