Nagamas eyes profit by 2013

Nagamas International Bhd, which is currently reporting financial losses, expects to return to the black by the end of this year, Group Managing Director Shaik Rizal Sulaiman said.

He said the property developer expects to report a profit by the end of this year, mainly due to sales derived from the newly launched Alorie Cocoon Resortin Perak.

He added the new resort, with an estimated gross development value (GDV) ofRM230 million, is expected to contribute about RM6 million a year in recurring income.

“After the resort, we will have our Silverlake project, which is an integrated tourism development, which possesses a GDV of approximately RM1billion,” Shaik Rizal told reporters after the launch of the resort by Deputy Minister of Finance Datuk Donald Lim Siang Chai here today.

For the first half of this year, Nagamas registered a pre-tax loss ofRM694,000, a further drop from a loss of RM207,000 reported in the same periodlast year.

Revenue for the six-month period also fell to RM5.484 million from RM7.997million previously. The Alorie Cocoon is an eco-luxury lakeside resort encompassing 111 villa units, each with a private pool, in Batu Gajah, Perak.

Shaik Rizal said the villas are now available for sale on a lease back concept to Alorie Hospitality, to operate the property as the resort.

“The project promises 80 per cent profit sharing to buyers of the villa witha potential return of up to 15 per cent per annum for 30 years representing allthe incomes generated from the resort.

“We are targeting both local and foreign buyers with a 50:50 ratio,” hesaid. He said the sales will be done in phases, with about 50 villas up for salefrom RM2 million each in the first phase.Construction of the resort is expected to begin in mid-2013.

“The project will be completed at the end of 2015 and is slated to beoperational in the first quarter of 2016,” Shaik Rizal said. — Bernama