“Berjaya Hartanah launches Oaka Residences in Bukit Jalil, offering premium condominiums with a GDV of RM373 million. Designed for families and professionals, the project boasts modern facilities and excellent connectivity.”
Kuala Lumpur, 25th Nov 2024, 02.44pm – Loss-making lingerie manufacturer Classita Holdings Bhd is exploring diversification into the property investment sector to boost its financial prospects, driven by anticipated demand in the real estate market.
This move aligns with the group’s acquisition of 18 retail shoplots in Kajang for RM17 million from Paris Dynasty Land Sdn Bhd, as disclosed in a Bursa Malaysia filing on Friday.
“The board anticipates that the property investment business could contribute over 25% of the group’s net profits or net assets in the future,” Classita stated, emphasizing the potential for improved financial performance.
While expanding into property investment, Classita plans to retain its existing businesses, including its undergarment manufacturing segment, which has faced declining revenue, and its loss-making property development and construction operations.
The Kajang retail shoplots, currently under construction by Paris Dynasty Land, are the only properties listed in the proposed diversification. The project is slated for completion in the first quarter of 2025.
The RM17 million acquisition price — equivalent to RM526 per sq ft — was deemed competitive, based on an internal valuation of comparable properties ranging from RM450 to RM850 per sq ft. Classita plans to fund RM4 million of the purchase through internal resources, with the remaining RM13 million drawn from proceeds raised during its RM88.05 million rights issue in July 2023.
Shares in Classita remained flat at 6.5 sen on Friday, giving the company a market capitalization of RM74.41 million.
This strategic pivot highlights Classita’s efforts to stabilize its business and leverage opportunities in Malaysia’s growing property investment market.
