Property developer, Syarikat Kapasi Sdn Bhd (“Kapasi”) is a subsidiary of Asian Pac Holdings Berhad (“APHB”) that was acquired in the late 1990’s for its 23.5 acres of land.
The completion of the acquisition of Kapasi unfortunately coincided with the Asian Financial Crisis, which saw APHB adversely affected in both financial and business aspects thus inevitably saw the group voluntarily seeking assistance under the Corporate Debt Restructuring (“CDR”) scheme. In undergoing this exercise, the group was able to complete repayment of all its debts without any shavings in 2007.
During this period, the group continued with its property development operations and from the 23.5 acres, Kapasi first developed the KK Times Square 1 project comprising shops/offices on approximately 8.5 acres which was funded internally. On completion, Kapasi then ventured into mall ownership and management in 2011 through the KK Times Square 2 development, which comprises The Loft Residence and Imago Mall (“Imago”).
However, with the CDR stigma, most financial institutions were reluctant to extend credit lines to the group notwithstanding the successful development and sales of most of its projects in Kuala Lumpur and Kota Kinabalu during the period, which were mainly self-funded. As the development of KK Times Square 2 required relatively large financing due to the size of the development, approximately RM900 million in GDV, APHB was introduced to the bond/Sukuk market as an alternative to the traditional syndication route as the rates and tenure were competitive.
Danajamin helped us by advising us throughout the entire process.
Danajamin assisted us by providing guidance throughout the entire process, from origination to implementation. As a customer, this was a memorable journey as it was our first time tapping into the debt capital market to raise the medium-term notes (“MTN”), within a very short time frame. Many were sceptical with our ability to complete the KK Times Square 2 project, but the funding assisted APHB to complete the project and the Imago opened with more than 90% tenancy in 2015.
Through the success of Imago, Kapasi has become one of the top mall owners and managers in the country, having transformed the retail environment in Kota Kinabalu whilst simultaneously creating jobs that have benefited over 95 per cent of locals. The mall has also allowed us to create initiatives that have contributed to the environmental, economic and social aspects of the local community. As part of our initiative to drive local entrepreneurship, we continue to actively encourage the inclusion of local-based retailers and provide a platform for them to move up in the retail business.