Multi-Purpose’s RM3b project to be its biggest

The Malaysian government wants it to be an iconic development in Golden Triangle in Kuala Lumpur, says Multi-Purpose's managing director

Multi-Purpose Holdings Bhd (MPHB) will launch a RM3 billion project in Kuala Lumpur by the middle of next year which will complement the government's proposed international financial district and Pasar Rakyat redevelopment in Imbi.

Managing director Datuk Lau Kim Khoon @ Surin Upatkoon said the mixed development will be the group's biggest project.

It will comprise a one million sq ft full-fledge retail podium on 2.4ha, 50-storey luxury condominium, 35-storey four-star hotel and 30-storey office tower.

At a later stage, MPHB will build one more office tower and a residence complex. The whole project will be carried out over seven years, Lau said.

"We are fine-tuning the master plan and design. The government wants it to be an iconic development in Golden Triangle. This will be one of the biggest projects in town," Lau said after MPHB's shareholder meeting in Kuala Lumpur yesterday.

Lau said the initial stages of the project will be financed with MPHB's internally generated funds.

The cash-rich MPHB has RM1 billion reserves. Its shareholders' fund is RM2.1 billion.

"There is no need to raise funds at this stage as we are reasonably liquid in terms of cash. The project will be exciting for us to work on. We are confident property development will become a major contributor to our profit and loss account," Lau said.

Currently, 80 per cent of the group's revenue comes from the gaming business through its 51 per cent stake in Magnum Holdings Sdn Bhd. The rest is from property, insurance, stockbroking and treasury management.

In the fiscal year ended March 31 2010, MPHB made net profit of RM327 million on revenue of RM3.3 billion.

MPHB has some 2,200ha worth RM1 billion in Kuala Lumpur; Rawang and Mimaland in Selangor; and Penang. It also owns 1,840ha of agriculture land in south Johor.

"We are still acquiring land in prime areas in Kuala Lumpur to carry out more projects," Lau said.

At present, MPHB has three projects worth some RM300 million: two residential developments in Penang and one in Pudu, Kuala Lumpur. The project in Pudu is to turn an office block into a three-star hotel operated under the Flamingo chain.

By Business Times