Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Thursday, February 17, 2011

Metro Kajang looks to grow its plantation business

KAJANG: Diversified group Metro Kajang Holdings Bhd, which currently has its core business in property development, is aggressively looking to grow its plantation division into another core business.

Metro Kajang other current businesses are trading, manufacturing, property investment and integrated livestock processing.

Executive Chairman Datuk Alex Chen said for the financial year ended Sept 31, 2010 (FY10), property development represented 62% of the company's turnover, while the balance 38% was spread between the other divisions.

Chen said, while property development remains Metro Kajang's core business the company expects its oil palm plantation division - which is still a fairly new business, to contribute more significantly to revenue in the coming years.

In Jan 2008, the company acquired 16,000 hectares in East Kalimantan, Indonesia via its subsidiary, PT Kam, in preparation for its second core business.

“We expect the plantation division to contribute about 20% to total revenue in FY12 onwards,” he said at a media briefing on Metro Kajang's current and upcoming projects.

On the property division, he said Metro Kajang ongoing and new projects were in Kajang, Semenyih, Bangsar and Kuala Lumpur. “We expect to generate a total gross development value (GDV) of RM2.1bil in the next five years or RM3bil over the next seven years from these projects,” he said.

He said in FY10/FY11 new property projects should amount to a GDV of RM586mil and expect more property projects to be launched the following years.

Within Kajang and Semenyih the company has about 800 acres landbank.

Metro Kajang's ongoing property projects include Kajang 2, its flagship integrated urban lifestyle township development covering 270 acres of freehold land in Kajang.

He said Kajang 2 would benefit from the rail transit extension and KTM network. Phase 1 of Kajang 2 slated to be launched first quarter this year has a GDV of RM157mil.

The selling price of two-storey terrace and semi-detached houses under Phase 1 range from RM429,000 to RM889,000.

Future phases of Kajang 2 would consists of residential and commercial units and has a GDV of RM1.25bil over eight years.

In a filing to Bursa Malaysia yesterday, Metro Kajang had proposed to implement a 1-for-10 bonus issue of 24.05 million new shares of RM1 each.

The company said the proposed bonus issue would be implemented by capitalising RM24mil on its retained earnings and it aims to maintain a minimum 5% per share dividend in FY11.

By The Star

No comments: