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Wednesday, February 27, 2008

Melati Ehsan seeks to expand its property development

KUALA LUMPUR: Melati Ehsan Holdings Bhd, with construction as its core business and main revenue contributor, is expanding its earnings base to include more property development.

“The value in hand currently, for property, is RM500 million, whereas for our construction division, the current value is RM900 million. Our property development will continue to contribute 30% towards our group revenue for the next two years,” Melati Ehsan’s independent non-executive chairman Datuk Dr Ku Abd Rahman Ku Ismail.

Listed last March on the Main Board, Melati Ehsan is set to commence the development of its sole plot of land in Pandamaran, Klang in two months. The almost 100-acre tract was purchased for RM32 million, or approximately RM7.40 per sq ft.

“Our project in Pandamaran is scheduled for completion in five years, with a gross development value of RM500 million. This will provide us with a continuous source of income,” Melati Ehsan’s managing director Datuk Yap Suan Chee told reporters after its AGM yesterday. He added it is the last plot of land left in Pandamaran.

The gated development is adjacent to Bukit Tinggi and would consist of medium range residential and commercial units, with estimated selling prices from RM200,000 to RM350,000. The 2-storey link houses will have built-ups of 2,000 sq ft onwards while the commercial development will comprise 2- to 3-storey shop offices.

The developer is also currently looking for a parcel of land to build a hypermarket on. According to Yap, they are currently in talks with a few hypermarket operators but declined to disclose any further information.

“We are still sourcing for suitable land in prime areas. We prefer the Klang Valley – it is all about price and location,” Yap said when asked if there are plans to add to its landbank.

Melati Ehsan is currently developing the 300-acre Taman Ehsan Jaya, located within the Iskandar Development Region in Johor. It is currently 50% finished and set for completion within three years.

By theSun (by Rosalynn Poh)

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