The Group has identified Timor-Leste as a potential emerging market. The country, rich in oil and gas and highly reliant on oil as its export, has started looking into the development of its tourism industry following the oil price crash since 2014. Therein, thus, lies numerous untapped opportunities due to the country’s shortage of quality residential and commercial properties. The Group intends to ride on the government’s large scale development plans for Dili, which will allow home buyers and investors to enjoy a growth in valuation of the Group’s upcoming developments, namely a mixed development project, a wholesale centre, and a seafront resort. Leveraging a first-mover advantage, the Group believes its timely entry will broaden its earnings base whilst generating new and sustainable streams of revenue.

Land held for future development and/ or for sale

Strategically located adjacent to the bustling Central Business District and next to the automobile centre in Dili’s city centre, the project site has a total area of 5,310 sqm.

Timor City Square S.A. (“TCSS”), in which the Group currently owns a 60% stake, has acquired a 99-year leasehold Surface Rights over the project site. Under Timor-Leste laws, the Surface Rights allow companies holding such rights to establish a horizontal property regime for the land which in turn, allow for properties built on the land to be sold and owned by third party buyers. TCSS is contractually committed to the landowner to develop a high-rise mixed property within nine years from 2019, giving it ample grace period to time such development plans to favourable market conditions.

In the interim, the Group plans to build low rise shops for short term leasing for use as a wholesale centre, with the intention of generating rental income from it. Although the building plan has already been approved by the authorities, construction was delayed because of Covid19 lockdowns and travel restrictions into Timor-Leste. Construction work is expected to resume once the Covid19 related measures are relaxed.

Property under development

In March 2019, Timor Marina Square S.A., in which the Group owns 69% as at 31 July 2021, entered into an agreement to develop two blocks of mixed development properties (23-storey and 19-storey respectively), comprising retail, office, serviced apartments and luxurious residential apartments, in Timor-Leste.

Upon completion of the development, it will be an awed landmark primed to target investors from China, Taiwan and Singapore.

These spacious units which are designed to look aesthetically fascinating also come furnished and functional. Do keep a lookout for the price release and ultimately, its projected returns!

Construction commencement plans continue to be delayed due to the Covid19 travel restrictions for all incoming visitors into Timor-Leste. The Group, however, has been actively engaging with the authorities in Timor-Leste to better understand all its latest developments. Air travel, though suspended by the Timor-Leste authorities, looks set to resume with the growing number of fully vaccinated individuals. As more countries begin to open up for mutual air travel, the Group is confident that the preparations made for sales and marketing of TMS will be rolled out promptly.

The Group has already received early signs of interests from many prospective investors, including those seeking to make block purchase. The planned visits by these investors will be carried out once travel restrictions are lifted.

Other real estate related activities

The Group has a 15% stake in Vico Construction S.A. (“VCSA”), a company incorporated in Timor-Leste, and managed by an experienced Singapore building and construction company, Vico Construction Pte Ltd. VCSA will be actively seeking to participate in urban planning and infrastructure construction projects in Timor-Leste.

In July 2019, the Group signed a Memorandum of Understanding (“MOU”) with Dili Development Co. LDA. with the intention to jointly develop a plot of coastal land into a seafront resort.

Located at Fatumanu in Dili, five kilometres from the city centre, the land boasts an array of pristine beaches with crystal clear water home to an abundance of seas corals and marine life, making it one of the most scenic coastal views of Timor-Leste. First of its kind in the country, the resort seeks to be a luxurious destination for tourists, in particular, Australians and Chinese.

The feasibility study to determine the economic viability of the proposed venture, which includes ensuring firm commitments from various airlines, Chinese especially, to operate or increase the frequency of direct flights to Dili; securing MOU partnerships with overseas travel agencies to offer and market direct tour packages; as well as garnering support from environment officials to endorse and approve the local project, was underway but is currently put on hold due to the ongoing Covid-19 outbreak.

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