TSR aims to secure 10% of jobs tendered

KUALA LUMPUR (Aug 3): TSR Capital Bhd, which currently has an order book of RM800 million, is tendering RM5 billion worth of construction projects, including the Damansara-Shah Alam Elevated Expressway, Sungai Besi-Ulu Klang Elevated Expressway, and mass rapid transit and light rail transit 3 projects.  

Besides, the company has property development projects in the pipeline to be launched.

Speaking to the press after the company’s extraordinary general meeting, TSR Capital chairman Tan Sri Mohamad Noor Abdul Rahim (pictured) said the construction division will remain as its key earnings driver.

“We hope to secure 10% out of the total tenders,” he said, adding that the division will contribute 80% of earnings, while the property segment accounts for 20%.

Despite the soft property market, Mohamad Noor said the group will be looking to launch a mixed development project, RITZ Business Center in Bandar Enstek, Sepang, which carries an estimated gross development value (GDV) of RM600 million.

“The development will take six years to complete,” he said.

In addition, the group will also launch its serviced apartment in PD Waterfront, Port Dickson, by year end.

“The property sector may be slowing down, but tourism products remain resilient,” he added.

“We will continue to pursue acquisition of land in strategic locations, such as pocket lands within [the] Klang Valley, in order to strengthen our property development business,” Mohamad Noor shared.

While concern about the glut of office space is growing, TSR Capital is planning a new office tower with retail space on the tract it bought near Mutiara Damansara, Selangor, with an indicative GDV of RM230 million.

The new office block, which is pending further deliberation of the company’s board, will sit on a 5,078-sq m (0.5ha) tract situated behind its headquarters, Menara TSR.

According to Mohamad Noor, the company secured a development order from the Petaling Jaya City Council in May for the construction of two blocks of office towers, comprising 19 and 11 storeys respectively, together with a four-storey basement car park on the land.

“But it (the actual development plan) is subject to the board’s final discussion. We will bring the development plan back to [the] drawing board to fine-tune details such as [the] design and floor space.

“We may take another year to deliberate over the plan and it should be completed within two years, after construction work begins, depending on market condition,” he added.

On its oil and gas (O&G) venture, Mohamad Noor said the group is currently conducting the due diligence process and expects it to be completed by the end of September.

“We will make a decision [based on the report],” he said, adding that the group is venturing into plant maintenance and civil engineering in the O&G sector, which is not affected by the current downturn.

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This article first appeared in The Edge Financial Daily, on Aug 3, 2016. Subscribe to The Edge Financial Daily here.