Eupe to roll out four projects with GDV of RM960m

KUALA LUMPUR: Eupe Corp Bhd plans to roll out at least four projects, two projects each in Selangor and Kedah, with a combined gross development value (GDV) of RM960 million in the current financial year ending Feb 28, 2015 (FY15).

Its group managing director and chief executive officer Datuk Beh Huck Lee pointed out that the group in fact has projects with total GDV of RM1.2 billion in the pipeline.

The Kedah-based developer has unbilled sales of RM100 million, Beh told The Edge Financial Daily in a recent interview.

For the time being, Beh noted that it has sufficient war chest landbank expansion. The company has undeveloped landbank of 1,100 acres (445.15ha) mainly in Kedah, and it is scouting for land in the Klang Valley, he added.

The developer in December last year bought its third piece of land, measuring 3.2 acres, near Jalan Syed Putra in Kuala Lumpur from Dewan Bandaraya Kuala Lumpur (DBKL) for RM45.4 million. However, Beh said that Eupe has not finalised the development plan for the land. This is a 99-year leasehold land with a lease that expires in September 2086.

Eupe is planning to launch its maiden project in the Klang Valley in September this year to tap the growing property market. “I think the potential for KL grows greater by the day because of the rising young population,” Beh said.  

Its first project, namely Resonace in Bangsar South, will have a plot ratio of six and a GDV of RM460 million.

Sandwiched in-between the offices there, Resonance would only consist of residential properties, especially serviced apartments that range from 650 sq ft to 1,200 sq ft said Beh.

Beh says the potential for the property market in Kuala Lumpur is growing because of the rising young population.

“Rather than competing head-on, we provide residences for people who work here,” he noted, adding that the project developments by UOA Group and KL Gateway by Suez Domain Sdn Bhd have provided ample supply of office space there.

“The demand for houses should be stronger than commercial (properties),” said Beh.

The project is undertaken by Eupe Bangsar Development (JV) Sdn Bhd, a 50:50 joint venture between Eupe Corp’s wholly owned subsidiary Eupe Kemajuan Sdn Bhd and Bangsar South Developments Sdn Bhd.

Apart from the development in Bangsar South, Eupe will also launch a project, called The Weave, in Cheras.

Over in Kuala Muda district, Kedah, Eupe is rolling out two projects by FY14, which are Somerset and the phase two of Cinta Sayang Resort Villas.

“Kedah has a slightly slower growing economy but it’s solid, it has a lot of natural resources to support the growth,” said Beh.

Beh pointed out that the existing tracts it owns in Kedah are enough to last them for another four and a half years.

As for its overseas venture, Eupe has a presence in Australia. However, Beh said, “My purpose of going there at this moment is more for strategic purposes rather than profitability.”

“Going to Australia allows us to build business worthiness and credibility,” he said, adding that it did not put a lot of financial resources into its venture in Australia.

The group has raked in a net profit of RM12.9 million for FY14, a drop of 12.9% from RM14.8 million a year ago. Revenue, however, came in 26.9% higher at RM186.1 million compared with RM145.6 million the year before.

It explained in a note to Bursa Malaysia that the loss under the chalet and golf management division widened to RM1.8 million from RM181,000 previously.

Beh said that the losses at the division would remain at that level if not wider. However, he expects improvement in two years’ time as the company is refurbishing and replacing the facilities in the chalets.

In line with the rally of the small-cap property stocks, Eupe share price has gained 29.5% year to date from 71 sen at end-2013 to close at 94.5 sen last Friday, after it reached the seven-year high of RM1.08.


This article first appeared in The Edge Financial Daily, on May 12, 2014.