Cyberjaya, SELANGOR: Education company Minda Global Bhd will sell off non-core assets as part of its turnaround plan to return into the black.
"We will continue with our asset-light strategy in streamlining our focus on educational services," said Minda Global group chief executive officer Naresh Alagan.
“We have quite a few properties which are not being fully-optimised. There are costs associated to holding on to these properties.
“We don't want to carry large infrastructure assets anymore. If the right price is offered or if there're offers to rent out these assets at good rates, we'll definitely consider,” he added.
Minda Global's 2018 annual report shows that the group, via Asiamet, indirectly owns 33 properties, comprising 26 freehold properties in Cheras, Selangor, two leasehold properties in Ipoh, Perak, two leasehold shoplots in Kota Baru, Kelantan and three leasehold properties in Kota Kinabalu, Sabah.
In an interview at the campus of Cyberjaya University College of Medical Sciences (CUCMS), Naresh pointed out the building, which can accommodate 8,000 students and teaching staff, is owned by HCK Group.
"A year ago, CUCMS relocated to this five-acre campus in Cyberjaya. We signed a long term lease with HCK Group for this purpose-built campus for the comfort of our students," he said.
CUCMS offers degree and post graduate programmes such as medicine, pharmacy, pyschology, allied health sciences, business & management and occupational safety.
Minda Global's second quarter losses ended June 2019 narrowed 25 per cent to RM4.49 million from RM5.99 million, a year ago.
This was on the back of second quarterly revenue rising 5.9 per cent to RM24.11 million from RM22.77 million, previously.
Although Minda Global is still loss-making, Naresh assured the group is targeting to be Ebidta (earnings before interest, tax, depreciation, and amortisation) positive this year.
"Our turnaround plan is working and our student numbers is building up,” Naresh said. "We hope to break-even in a couple of years.”
Naresh was appointed to lead Minda Global in January 2019. Previously, he was the chief executive officer and executive director of AirAsia Global Shared Services Sdn Bhd overseeing more than 350 staff who provided financial and information technology (IT) support to the AirAsia Group.
Now, Naresh, in his day-to-day running of the business, works closely with Minda Global managing director Tan Sri Dr Palaniappan Ramanathan Chettiar, the company’s single largest shareholder with 56.98 per cent stake.
Apart from operating at the CUCMS campus in Cyberjaya, Minda Global's other education centres are conducted via Asia Metropolitan University (AMU), Asia Metropolitan Colleges (AMC) and Asia Metropolitan International School (AMetIS).
AMU's campuses are in Kuala Lumpur and Johor Baru while AMC operates at Kota Kinabalu, Kuching and Kota Baru. AMetIS is based in Ipoh.