sept 05, 2008...q&a : Newgate

Looks like it is still a standstill at Newgate. We have receive many proposals to revive the project since last year. They include many of our corporate giants, however, the raising construction cost is hindering our efforts.

Now we have another proposal. They are seeking a top up of almost 30%. Again, this amount will hurt the buyers. But we have to look positively that steel prices have shot from RM2,400 per ton in January 2008 to almost RM4,000 per ton today. Cement has gone up almost RM5.00 per bag.

Again, this just a proposal. Let us brainstorm this figures and lets us also see what the new developer has to offer or say. Once we receive the final proposal, we will call for the purchasers meeting to put forward the proposal. We can then delibrate and reject if we are not satisfied.

Regards,

Pritpal