KUALA LUMPUR (Jan 13): HIL Industries Bhd received its shareholders’ approval at the extraordinary general meeting on Wednesday (Jan 12) to undertake residential development joint ventures (JVs) on five parcels of land in Sungai Buloh, Klang and Jugra in Selangor.
With the approval, HIL Industries will partner Unik Sejati Sdn Bhd, Pembinaan Kesentosaan Sdn Bhd and Amverton Carey Golf & Island Resort Sdn Bhd to develop residential developments with an estimated gross development value (GDV) of RM471.1 million on 40.9 hectares land in Selangor.
In a statement Wednesday, the group said the developments will comprise 154 stratified double-storey terrace houses in Sungai Buloh, 78 double-storey terrace houses in Klang, as well as 141 stratified bungalows and 428 townhouses in Amverton Cove, Carey Island.
On the rationale of the exercise, HIL Industries president and CEO Datuk Milton Ng said the JVs are in line with the company’s aim to expand its property business in Klang Valley.
“The JVs are an opportunity for the company to replenish its property development projects with minimal costs upfront and are expected to increase the revenue and profit contribution from the property development segment,” said Ng.
Based on the management feasibility studies, HIL Industries is expected to generate an estimated gross development profit of RM96.1 million from the JVs, said Ng.
“The JVs would also allow HIL Industries to participate in the developments without an outright purchase of the land which will otherwise require significant cash outlay.
“In addition, the landowners’ entitlements will be paid entirely in terms of units instead of cash, which will ease and conserve HIL Industries’ cash flow for its operations,” he added.
Moving forward, HIL Industries said it will continue to source and look for opportunities to obtain more development land within Klang Valley to ensure the continuous growth of its property business.
HIL Industries’ shares were last traded at 94 sen, valuing the one-stop plastic solution provider and property developer at RM312.33 million.
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