Talam Corp Bhd (Talam) aims to exit the Practice Note 17 status it is in by next January after shareholders approved its debt restructuring and turnaround plan during the company’s recent EGM.

The revamp involves the issuance of Islamic debt securities, preference shares and loan stocks, and hiving off non-core assets. Executive director Chua Kim Lan said the plan would reduce the group’s debts to approximately RM400 million from more than RM740 million currently.

Chua added that it would be able to reduce its gearing ratio to 0.7 from 2.37 in the financial year ended Jan 31 (FY 2008), while its paid-up capital would be RM800 million.

She said the company would progressively divest its non-core investment businesses such as colleges, shopping centres and hotels, adding that it would sell as long as the price is right and use the funds for working capital and loan reduction. She revealed that Talam is also considering to sell its commercial and industry land.

To date, Talam has a land bank of 4,000 acres in Selangor, excluding joint venture (JV) land, mainly in Puchong and Bukit Beruntung.

Last year, Talam awarded IJM Construction Sdn Bhd (IJM Construction) two contracts, to complete its abandoned housing projects. The two contracts are valued at RM700 million and RM125 million each. Chua said almost all 10,000 previously abandoned residential units would be completed by the end of 2009 with an unbilled gross development value (GDV) of RM800 million.

In China, Talam has a JV with IJM Construction to develop a RM500 million 35-storey residential and commercial project in Changchun, China. Chua said the project is currently up to eight storeys, and is expected to be launched in the third quarter of 2009. She added that the company and its partners are looking for more integrated development projects in China.