Top Creation posts net loss following delays in Malacca mall development approval

Top Creation Investments Limited has posted a consolidated net loss of 0.19m pounds for the six month period ending September 30th in its unaudited interim results published on Friday morning.

The total comprehensive loss for the period was £190,968, compared to a loss of £408,316 in the period from February 15 to September 30th 2011.

The company, which focuses on investments in the real estate sector with a primary focus on Malaysia, has invested approximately £2.8m (RM14m) in the purchase of a freehold real estate in Malacca, Malaysia. When the proposed development is completed, the property will comprise a shopping mall and services home suites.

The company stated that the development is still in progress and no revenue had been recognised to date.

As announced in May, the company has made a second investment by way of a joint venture which has secured reservations for the development of two lots of land in Kuala Lumpur. The board anticipates that the joint venture will be funded from the off-plan sale of units to be built.

Zhang Li, Chairman of Top Creation Investments Limited, said that there had been a delay in the company receiving approval from the relevant authorities for its Malacca investment following architects re-submitting plans.

He said: "The company's investment in Malacca continues to make progress, which we believe will give us the opportunity to ultimately deliver significant shareholder value. However, as a result of feedback from potential buyers interested in buying off-plan during the pre-sale process, the architects revised the plans, which then needed to be re-submitted to the authorities for approval.

"This has inevitably caused a delay. We anticipate that the necessary approvals will be obtained by March 2013. It is hoped that construction can commence immediately upon those approvals being granted, with practical completion being achieved by March 2015."

He added: "In addition, as announced in May 2012, the company made a further investment by way of a joint venture which has secured reservations for the development of two lots of land in Old Klang Road, Kuala Lumpur. The board anticipates that the development costs will be funded from the off-plan sale of the units with revenues beginning to flow from the second half of 2013. Completion is expected to occur by May 2014."

MF