Ken Holdings mulling plans to build resort villas in Penang, says report

KUALA LUMPUR (May 4): Ken Holdings Bhd is “looking to” build resort villas “on its two-acre beachfront land in Batu Ferringhi, Penang,” The Edge Malaysia reported in its latest issue.

A source told the weekly that the resort will be made up of “villas with private pools, something different from most of the hotel concepts in Batu Ferringhi”.

“The timeline is still being finalised but the main aim is to help the group grow its recurring income.

“The land was originally earmarked for a property development but following the decision to generate recurring income, there was a plan to move into hospitality a few years back but the concept wasn’t finalised,” added the source.

“The hotel industry in Penang remains resilient despite increasing supply and Batu Feringghi continues to be a popular tourist spot. What is crucial for the company is to get its positioning and product right,” the source said.

Meanwhile, Ken Holdings managing director Sam Tan told the business publication that the company is planning “do something different in Penang” but did not go into any detail, saying it is “actively working on growing its recurring income stream to ensure it builds a sustainable business”.

“We believe having a mix of revenue streams from rental and sale of properties will enable us to have sustainable income in the coming years. Strategies include continuing our efforts to develop better sales and leasing strategies to sell the remaining inventory of the group and strengthen our recurring income base to deliver consistent growth in the long term,” he added.

It has been reported that beside the two freehold parcels of land in Batu Ferringhi totalling 2.53 acres, Ken Holdings also has land in other states such as two freehold plots totalling 4.95 acres in Bentong, Pahang, two freehold parcels in Klang, Selangor measuring of 4.32 acres and five freehold parcels of more than 23 acres in Johor.