PETALING JAYA, August 8:
Developer Prinsiptek Corporation Bhd is well positioned towards becoming a significant player in the local property market after getting shareholders’ approval at today’s extraordinary meeting to raise funds for expansion and drawing on its experience in Thailand.
“Projects in Thailand are challenging development because the market there is based on a build and sell concept,” said managing director Datuk Foo Chu Jong.
“In Malaysia, it’s coming soon. The government has announced 2015-2016, it will be compulsory here.”
On the rights issue proceeds of RM34 million, Foo said the bulk of it will be used for its property development and acquire land bank in the Klang Valley.
He said the company is in the midst of having discussions with landowners to acquire new land bank and will focus on the Klang Valley.
PCB currently has a total land bank of 170 acres – scattered around areas such as the Klang Valley, Penang, Pahang and Thailand.
Foo said its projects in Thailand, which include mixed development in Ayudhaya, had a gross development value (GDV) of RM96 million and a 33% take-up rate.
‘We have residential and commercial projects in Thailand. We’re also launching some shop lots. We’re in the midst of the planning stages.”
Locally, the firm’s projects include serviced apartments in Jalan Pahang with a GDV of RM144 million.
“We’re looking to launch another two new projects worth over RM300 million in the next twelve months in Shah Alam and Penang.
“The Shah Alam residential project, which has a GDV of RM160 million, is expected to be completed in three years’ time.”
On its construction business, he said the company has a total unbilled order book of RM230 million to date and the management is working towards replenishing some construction projects in the near future to boost growth prospects.
The company has some RM540 million worth of upcoming projects in hand, said Foo, adding that 90% revenue contribution comes from its construction sector and 10% from property development.
He said this ratio is expected to gradually change to a 70%-30% by next year as the construction industry gets increasingly competitive and more projects currently in the pipeline are launched.
“Sometimes one construction work can have 100 tenders. It’s very competitive. So there must be a shift. We’re completing our constructions works in hand.
“With this exercise, we then go and get more land bank and then go for property development,” said chairman Tan Sri Mohamad Noor Abdul Rahim.