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Friday, February 29, 2008

Fiamma Holdings’ maiden property venture

FIAMMA Holdings Bhd (Fiamma) will soon start work on its first property venture, a serviced apartment and SoHo project located on Jalan TAR, Kuala Lumpur.

“We’re working on the development order and we aim to get the order this year,” said Jimmy Lim, group chief executive officer and managing director of Fiamma. According to Lim, the project is expected to have a gross development value (GDV) of between RM150 million and RM170 million.

“There will be one block and we’re looking at 30 storeys, subject to approvals,” said Lim after the company’s AGM held yesterday. The 1.06-acre freehold tract was acquired by its unit Fiamma Development Sdn Bhd last year for a total of RM16.5 million and the transaction was completed in November last year.

Fiamma had also entered into a sale and purchase agreement (SPA) to acquire land in KLCC, on which it would develop an office and serviced apartment. According to Lim, the SPA is pending completion. “We hope to launch it immediately after the SPA is completed,” he said.

The company’s foray into property development is due to a decision to diversify its earnings base. Lim revealed that the company would eventually have two core businesses — trading and property development. “We expect property to contribute to our earnings by 2009 onwards,” he added.

For the financial year ended Sept 30, 2007, Fiamma recorded an increase of more than 200% in pre-tax profit at RM12.6 million, up from RM4.1 million in the previous financial year.

By theSun (by Yeong Ee-Wah)

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