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Thursday, August 13, 2009

MK Land confident of achieving RM1b sales

Property developer MK Land Holdings Bhd expects to hit RM1 billion in sales in the near term as it grows double-digit annually over the next five years.

In the shorter haul, MK Land expects sales to breach RM600 million next year, buoyed by the Armanee Terrace condominiums and Rafflesia, two core products within its Damansara Perdana township in Selangor.

This should reflect further progress in the company's fortune after the return of Tan Sri Mustapha Kamal Abu Bakar.

MK Land, in which Mustapha Kamal holds a majority stake, slipped into the red in the years ended June 2007 and 2008 on extra costs incurred because of errant contractors.
It was the period when Mustapha Kamal stepped down as executive chairman from April 2007.

His return as chief executive officer in June 2008 made an instant impact as the company turned in a net profit of RM13.2 million for the nine months to March 2009, reversing the loss of RM18 million a year ago.

MK Land is due to announce its recently-ended 2009 accounts on August 28, with Mustapha Kamal only hinting that he was happy with the result. He is more bullish over MK Land's near to medium-term outlook.

"Instead of concentrating on other areas of our developments, we are focusing on the Damansara Perdana township.

"There are three major projects there - the Armanee Terrace, Rafflesia and Metropolitan Square. The projects alone will generate sales of about RM3.5 billion over five years," he said after the handing over ceremony of eight Modenas Elegant motorcycles to the Selangor police yesterday.

The motorcycles will be used to patrol Damansara Perdana, Damansara Damai and Cyberia.

"The strong demand of the projects will give the possibility of the company registering double-digit growth annually in the next five years," Mustapha Kamal added.

He disclosed that a local investor recently bought all 178 units of a tower within the Armanee Terrace's Block B development for about RM180 million.

Earlier, the entire three buildings within Block A, comprising 522 units, had been snapped up.

MK Land chief operating officer Fatimah Wahab said more towers will be built under blocks C,D, E and F.

Meanwhile, the improved financial performance enables MK Land to make an early payment of RM60 million in May to settle its outstanding bonds, ahead of the September deadline.

This subsequently cut its debts to RM400 million from about RM500 million as of June 2008, Fatimah said.

By Business Times (by Zuraimi Abdullah)

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