KUALA LUMPUR (March 29): Tanco Holdings Bhd indirect unit Palm Springs Development Sdn Bhd (PSD) has appointed sister company Gplex Realty Sdn Bhd (GRSB) to market the remaining available and unsold units of the Splash Park Suites project in Port Dickson in a related party transaction (RPT).
Splash Park Suites comprises 413 units in its first tower, of which construction is almost completed although 119 units are still unsold.
The deal is deemed an RPT as Tanco’s group managing director Datuk Seri Andrew Tan Jun Suan is an indirect major shareholder of Tanco as well as an indirect major shareholder in GRSB.
The rationale for the appointment is to make use of GRSB’s networks of sales teams and banks along with its database of prospective buyers to facilitate the rapid sales of the balance unsold units of the project, Tanco said.
This is considering a long hiatus in the project’s sales progress, complicated further by the impact of the Covid-19 pandemic in the preceding years, it said.
“The approximate transaction value from the Appointment (the estimated sales commission to GRSB) may amount up to RM4.9 million giving a percentage Ratio of 2.85%, whereas the sales of the Splash Park Suites will contribute positively to the Group’s revenues,” Tanco added.
Loss-making since 2012, Tanco just turned the corner in the first half of the financial year ending June 30, 2023 (1HFY23).
Shares of Tanco settled unchanged at 45 sen, giving it a market capitalisation of RM825.89 million. Year-to-date, the counter has gained 11.5 sen or 34.33%.