TROPICANA CITY MALL - Tropicana Golf & Country Resort

DIJAYA WILL RIDE THROUGHPROPERTY MARKET WELLWhile the operating environment for property developers isvery challenging, we expect Dijaya Corp to weatherthrough the property market relatively well.Dijaya has a debt-free balance sheet and unbilled sales ofmore than RM283 million that will support earnings foranother 18-month or so, based on this year's expectedrevenue base of RM180 million. This will tide it over untileconomic conditions improve, hopefully in late 2009.This year, the company will also enjoy a new, recurringincome base from the rental of Tropicana City Mall, whichshould provide revenue of over RM20 million a year. Themall opened in 18th December 2008 and is beinganchored by French hypermarket Carrefour.Following that, the adjoining Tropicana City Office Towerwill open, and should be able to provide annual rentalincome of about RM5 million. These new streams ofincome plus progressive billings from unbilled sales willsustain income to tide the company through until the nextcycle upturn.Dijaya has a large land bank, especially in Tropicana Golf &Country Resort and Tropicana Indah Resort Homes. Thecompany has also put into place a longer-term footprint byenlarging its land bank at the Klang Valley areas.Between December 2007 and February 2008, thecompany acquired a total 186.2-acre of land withinestablished areas, to be converted to residential statusand development later.The acquisitions include 26.4ha in Kajang, Selangor, for37.4ha in Jenjarom, near Klang and 10.7ha in Cheras.Tropicana AvenueInterior of Tropicana GrandeProject UpdateTropicana Grande will consists of 241 condominiums withlarge built-up space of 2,500-4,500 sq ft, located on 2.1ha.Tropicana Avenue comprises three blocks of nine- and11-storey shop offices on 2.8ha. In the meantime, thecompany is busy completing its existing projects inTropicana City and Tropicana Indah, as well as the shopsin TSB Sungai Buloh.The third and final stage of TSB Sungai Buloh will belaunched in first quarter 2009. The project is currently 64%sold. TSB consists of three-to-four-storey shops on 8.3haof land in the heart of Sungai Buloh, fronting Jalan KualaSelangor, with total GDV of around RM290 million.Dijaya will also focus on selling the balance of its projectsand inventory, such as those in completed projects likeCasa Suites, Tropicana City Tropics and Villa Green.Tropicana City Mall opened in 18th December 2008 andthe office tower will be completed in 2009. This will providea new source of recurring income from 2009 onwards, withrental income of over RM20 million from the mall and RM5million from the tower.We understand Dijaya may launch the newly acquired26.4ha Kajang land in 3Q09. This will feature mainlyterrace houses, with GDV of RM167 million.With this, Dijaya would have a total land bank of around386.8ha. With these new lands, the company will also beable to widen its product and customer mix from mainlyhigh-end to the middle and lower-middle market as well.Note: Extracted from Asia Analytica Sdn Bhd, a licensedinvestment adviser9 Directions