Risk profile change for Bandar Raya Developments

Posted on | September 9, 2011

By THE STAR

PETALING JAYA: The proposed sale of Bandar Raya Developments Bhd’s (BRDB) investment properties to major shareholder Ambang Sehati Sdn Bhd will have a negative effect on BRDB’s business risk profile over the longer term, according to RAM Ratings.

In a statement yesterday, it pointed out that should the proposed deal go through, BRDB would be divesting all of its investment properties, which have been providing a stable source of recurring rental income.

“The divestment will steer BRDB towards becoming a pure property developer. This, in our opinion, heightens the group’s business risk,” said RAM Ratings.

- Malaysia Property News

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