Nestcon delays property diversification, proceeds with RM15.1m office deal

• Nestcon will go ahead with a separate RM15.1 million related-party deal to buy three office units in its Nest 2 Residences project in Puchong. The new office will serve as its permanent corporate HQ to support business and staff growth.

KUALA LUMPUR (June 4): Construction company Nestcon Bhd (KL:NESTCON) said its plan to diversify into property development for more revenue sources will take more time and be revised.

In a filing with Bursa Malaysia on Wednesday, the company said it will amend its joint venture with Kumpulan Wilayah Sejati Sdn Bhd for an RM211.7 million serviced apartment project and said it needs more time to do due diligence on the two parcels of land for development.

Details of the revised plan, which is connected to the company’s plans to diversify into property development, will be announced later.

The draft circular for the proposed joint development and diversification will be submitted to Bursa Malaysia once the updated details are finalised. Its plan to become a property developer will need shareholders' approval.

Meanwhile, Nestcon will go ahead with a separate RM15.1 million related-party deal to buy three office units in its Nest 2 Residences project in Puchong. The new office will serve as its permanent corporate HQ to support business and staff growth. The seller, Nestcity Cemerlang, is partly owned by Nestcon’s group MD Datuk Lim Jee Gin.

The projects will be funded through internal cash and bank loans. Nestcon will submit the draft circular for the proposed acquisition to Bursa Securities separately.

For the first quarter ended March 31, 2025, Nestcon posted a RM2.74 million net profit, up almost 74% year on year. Its shares closed 1.37% lower at 36 sen, with a market capitalisation of RM257.3 million.

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