CAHYA MATA SARAWAK ANNUAL REPORT 2016

www.cmsb .com.my Section 03 P E R F O RMAN C E 2 0 1 6 Cahya Mata Sarawak Berhad 24 PBS had earlier executed strategic sales of land with a view to co-developing and jointly bringing greater vibrancy to the Bandar Samariang Township. These sales included 135 acres for an industrial park and 500 acres to the Sentoria GroupBerhad for awater themepark, safari park,meetings, incentives, comferences and exhibitions (MICE) facilities, as well as niche residential and affordable housing. In FY 2016, development on Phase 1 of the industrial park, comprising 48 semi-detached units and 13 detached lots on 135 acres proceeded smoothly, with a substantial amount of the semi-detached units constructed. The construction of the Ataria Resort and MICE facilities for the Borneo Samariang Resort City under the Sentoria Group Berhad is ongoing, while the water theme park is slated to commence operations in FY 2017. Construction works on the affordable housing project and the proposed resort site too are advancing at a steady pace. The estimated GDV for the Bandar Samariang developments under PBS is estimated to be in the region of RM414.00 million for the period 2016-2022. THE ISTHMUS The development of several iconic Green Building Index or GBI-rated buildings at The Isthmus reached an advanced stage of completion in 2016. These included the signature 12-storey Gateway Towers marking the entry point to The Isthmus which will house various State Government ministries and agencies including Pelita Holdings Berhad and the Sarawak Economic Development Corporation. InOctober 2016, the campus component of the UCSI Hotel and Campus development was opened while the hotel component is scheduled to open in the second quarter of 2017. The Raintree Square development comprising 54 units of three-storey strata titled shop-houses, which commenced construction at the end of 2015, is scheduled to be completed by the end of 2017. By the year end, there was a 59% take up rate for the first fully commercial titled strata shop-house development at The Isthmus. Thedevelopment’smanagement is seeking to capitaliseon the riverine aspects afforded by the location of The Isthmus by incorporating a highly desirable waterfront component into the development. Towards this end, a niche waterfront housing development with various residential typologies is being explored. OTHER DEVELOPMENTS The Property Development Division also owns several other land parcels which represent significant future development opportunities to be unlocked, some immediately and others once development in and around Kuching ramps up. The Division continues to actively explore various joint venture and collaboration opportunities within its area of expertise which will make a positive contribution to the development of Kuching city aside from strengthening the Group’s profitability. The Rivervale Residences, undertaken by CMS Property Development Sdn Bhd comprises 76 exclusive semi- detached houses within a gated and guarded compound and two 14-storey condominium blocks with a separate entrance and facilities. As at end FY 2016, committed sales for the semi-detached units stood at 74%. Comprising Type A (with a built up area of 2,328 sq ft) and Type B (with a built-up area of 2,107 sq ft) units, the bulk of the construction of the semi-detached houses was completed in 2016, with full completion expected in the second quarter of 2017. The take-up rate has been positive with all units of TypeA sold and only several Type B units remaining as at end 2016. As at end 2016, the superstructure works on Block A of the condominium had reached the level of the roof, whilst superstructure progress on Block B was 60% completed. To further strengthen the Division’s earnings and contribution to CMS, the Property Development Division continues to seek out mutually beneficial joint venture arrangements with private parties and State agencies to develop land banks around Kuching and major towns in Sarawak. MANAGement DISCUSSION AND ANALYSIS