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Kerjaya Prospek Property to buy land for serviced apartments

KUALA LUMPUR (May 29): Kerjaya Prospek Property (KPP) plans to acquire land to build serviced apartments.

Major shareholder of the company Datuk Tee Eng Ho (pictured) told The Edge Malaysia that the purchase will involve “a few plots of land: two in the Klang Valley and one in the northern region”.

“The land will be used to build serviced apartments. Announcements will be made very soon,” Tee said.

He added that KPP will continue to focus on pocket land development by launching mid-range to high-end high-rise products.

The weekly reported in its latest issue that KPP’s “net profit jumped threefold to RM63.53 million for the financial year ended March 31, 2021, from RM21.24 million in the previous year, thanks to the higher sales and development progress at its projects — Bloomsvale in Jalan Klang Lama (Kuala Lumpur), Kaleidoscope in Setiawangsa (Kuala Lumpur) and Straits Residences in Seri Tanjung Pinang (Penang)”.

Tee also “believes” prospects for the company’s construction arm Kerjaya Prospek Group Bhd (KPG) will “be better this year after the full lockdown last year”.

Meanwhile, the business publication also reported about Tee taking control of Eastern & Oriental Bhd (E&O).

Tee said the purchase of shares in E&O is based on his belief that the property market will see light at the end of the tunnel by year-end or next year.

“I am a long-term player … I talked to Sime Darby after getting to know that it was planning to sell its stake in E&O. It was good timing because I am very confident about the property market,” said Tee.

“The world is printing too much money and inflation will come back. So, we will see property prices shooting up. People could have more money as they don’t have the chance to spend,” he added

Tee also said that he “appreciates” E&O’s premium branding with “many high-end property projects over the years”.

“I have known E&O since 1996 when I did the first shoplot project for the company as a contractor. From a low to medium developer, E&O slowly became a high-end and premium developer. Its hotels are the best in Malaysia,” Tee explained.

He said E&O’s value is also “reflected by its sizeable land bank, especially in Penang”.

It has been reported that Phase 2 of its flagship STP project -- a master-planned seafront development on the northeast coast of Penang island -- spans 760 acres.

“In addition to 348 acres of land in Gertak Sanggul, Penang, it also has a land bank in the Klang Valley and Johor,” wrote The Edge.

Tee said that E&O’s shareholders should also not be too concerned about its debt level. “I have already put so much money in E&O. If I am not worried, why should they? The most important thing is how you create the value.”

As for the E&O Hotel in Penang, the group will consider selling the hotel if the price is right. “For a developer, everything can be up for sale if the price is right. However, it is not easy to sell, as we want a high premium [and not just the] market price,” Tee said.

Read the full report in this week’s The Edge Malaysia

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