DutaLand Bhd has yet to fully utilise the proceeds from the disposal of its plantation asset in Sabah, and may use the remaining sum to build its business and possibly to develop the Duta Grand Hotel (DGH) project in Kuala Lumpur.

Its wholly-owned subsidiary Pertama Land & Development Sdn Bhd sold its plantation land in Labuk-Sugut, Beluran, and Tongod for RM750 million cash to Boustead Plantations Bhd in 2017.

The company had planned to utilise RM430 million of the proceeds to fund its existing businesses, and RM188 million to acquire new business/assets.

DutaLand is involved in property development, construction, building maintenance, and property investment. It is controlled by Tan Sri Yap Yong Seong, better known as Duta Yap.

As at June 16, 2021, the company had utilised RM15.7 million or eight per cent (of RM188 million), and RM98.55 million or 23 per cent (of RM430 million), according to a filing with Bursa Malaysia yesterday.

DGH is an integrated mixed development with a land area of 122,000 sq ft and an approved gross floor area of 1.6 million sq ft, located at the intersection of Jalan Sultan Ismail and Jalan Ampang.

The development, located opposite the Renaissance Hotel Kuala Lumpur and diagonally across The Ritz-Carlton Residences Kuala Lumpur comprises a luxury hotel, office tower, hotel residence, serviced apartments, and retail. This is based on earlier plans for the project, which was initially named The Grand Duta Hyatt Hotel.

The Hyatt Group in 1994 reportedly had given the contract to develop the RM570 million project to Kuala Lumpur Landmark Sdn Bhd, a subsidiary of Olympia Industries Bhd.

However, construction was halted in July 1998 in the wake of the 1997/98 Asian financial crisis and had been left partially completed since then despite its premier location in the city centre.

In DutaLand's Annual Report 2020, the company stated that the planning work of the project to enhance the value of the development is in progress.

The company further stated that the management is looking at various ways to re-commence the project, with lower risk exposure, such as a joint venture (JV) or a forward sale of certain components of the project.

It is unclear what is the progress of the planning work for the DGH project at this juncture.

For the third quarter ended March 31, 2021 (3Q FY2021), DutaLand recorded revenue of RM49.7 million, as compared to the preceding year quarter (3Q FY2020) of RM9.9 million.

DutaLand told Bursa Malaysia the increase in revenue was mainly due to higher CPO trading volume which contributed RM45.9 million revenue for the quarter under review (3Q FY2020: RM8.4 million).

For the nine months period, the company posted revenue of RM119.8 million, as compared to the preceding year (YTD FY2020) of RM22.9 million.

Pre-tax profit for 3Q FY2021 was RM4.9 million as compared to a pre-tax loss of RM44.7 million for 3Q FY2020.

"The improvement of RM49.6 million is mainly due to better performance from the investment division for the quarter under review," it said.

For the nine-month period, the company recorded a pre-tax profit of RM21.2 million as compared to the previous year's loss of RM44.3 million.

On the current year prospects, DutaLand said the Covid-19 pandemic has significantly impacted many businesses in the country.

It said with the country's vaccination program and financial stimulus packages, the management is cautiously optimistic about its recovery.

As at June 30, 2020, DutaLand has total assets of RM1.34 billion. The assets include properties in Kenny Heights development project at Hartamas/Mont Kiara, Kuala Lumpur; the DGH project, and, the Oakland Lake Side Boulevard project in Seremban, Negeri Sembilan.

The Kenny Heights development project is a JV project between KH Estates Sdn Bhd, a 100 per cent-owned subsidiary of DutaLand, and Olympia Properties Sdn Bhd. It comprises 73.44 acres of development land featuring town villas, among other types of properties.

The Oakland project, comprising 182 units of shopoffices, with a gross development value (GDV) of about RM107 million was completed in 2020. The units are for sale and lease.