JAG ventures into property development

PETALING JAYA (Jan 3): Listed electronic and industrial waste processor JAG Bhd has entered the property development business with its upcoming mixed-use development project worth RM155 million to RM170 million in Klang.

According to a statement today, JAG Bhd plans to diversify its business to include property development and property investment while reducing its reliance on the waste management/recycling segment.

The property development and property investment business will be spearheaded by a wholly-owned subsidiary company, JAG Land Sdn Bhd, which will oversee the company’s proposed property development project involving a freehold land measuring 3.33 acres in Kampung Jawa, Klang. JAG Land had acquired the land for RM9.87 million in August last year.

JAG’s maiden property development will be a three-phase mixed-use development offering with shopoffices, office suites and residential apartments. Total gross development value of the development is expected to range from RM155 million to RM170 million. This will translate into a gross development profit of between RM20 million to RM35 million.

Construction work for this development is expected to commence in the fourth quarter of 2017.

JAG executive director Datuk Ng Meow Giak said: “Our proposed diversification into property development and property investment will enable our group to expand our sources of revenue while at the same time, potentially provide an alternative source of income.”

He added that the company is in the midst of exploring and negotiating with other parties to acquire more landbank and also considering to undertake property development projects via joint ventures. 

“All in all, we believe that our group’s diversification into the property sector is both timely and necessary as it will enable our group to enhance value for our shareholders,” he said.

JAG’s proposed diversification is subject to shareholders’ approval at a forthcoming extraordinary general meeting to be convened.

Currently, JAG’s core business activity is in the processing of electronic and industrial waste, where it extracts and refines ferrous, non-ferrous and precious metals. The group is also involved in computer software development, maintenance and support services, provision of marketing support, system integration and network solutions as well as operating 24-hour coin-operated (self-operated) laundry business in Malaysia. 

Even with the diversification, JAG Group intends to continue with its existing businesses in largely the same manner.

“The long-term prospects of our waste management/recycling business remains bright and will continue to contribute to our group’s performance in the foreseeable future,” said Ng.