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Monday, December 10, 2007

Nadicorp to expand property ops

KUALA LUMPUR: Nadicorp Holdings Sdn Bhd, owner of the country’s largest express bus operator, wants to expand its fledgling property business as part of the group’s overall growth strategy.

The holding company is known for its involvement in the transportation sector, as parent to Main-board listed Konsortium Transnational Bhd (KTB).

Nadicorp executive chairman Datuk Mohd Nadzmi Mohd Salleh told The Edge Financial Daily that the company wanted to carve out a niche for itself in the property segment.

Property is a growth segment we are looking at,” he said, adding that the holding company was in the final leg of completing its first property development project, which started three years ago and scheduled for completion by year-end.

The 16.6-hectare mixed-development project is located in Pasir Pekan, Kelantan, and will comprise residential and commercial buildings, Nadzmi said. These will comprise semi-detached and terrace houses, bungalows and shop houses.

He added that the gross development value of the project is RM40 million, with 80% of it already sold.

On Nadicorp’s plans in the property arena, Nadzmi said the company was keen on developing its existing landbank in the Klang Valley. “We are looking at potentially developing medium-cost, landed residential property projects.”

The company’s landbank size in the Klang Valley is currently 16.19 hectares. It has a total landbank of 499ha as well as 3,320ha of plantation land.

However, Nadzmi said Nadicorp did not plan to acquire more landbank in the near future as it did not plan to go into property on a large scale as of now. “Transportation will remain the bread and butter of the company,” he said.

Currently, Nadicorp’s transportation arm contributes 78% to overall group revenues. Other key contributors are its plantation business (12%), manufacturing (textile and apparel; automotive engineering which includes tyre retreading and coach building) at 8% and other support services (2%).

He added that KTB was also bidding for airport and bus link projects in Indonesia, with discussions at a preliminary stage.

“For the next two to three years, we will focus on the Malaysian and Indonesian markets and strengthen the revenue base,” he said, referring to Nadicorp’s future plans for KTB.

He added that the company had set an internal management target of some 10% revenue growth for KTB for the coming year.

As at end-September, Nadicorp’s group revenues totalled RM252.2 million of which RM188.5 million was from Nadicorp’s transportation business, Nadzmi said.

By New Straits Times (by )

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