F&N to launch PJ development in 4Q

KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N) will kick-start its planned property project in Petaling Jaya with the launch of 900 units of serviced apartments worth RM560 million in the fourth quarter (4Q) of this year.

Chief executive officer Somsak Chayapong told The Edge Financial Daily that the serviced apartments comprise the first phase of the development which has a total gross development value (GDV) of RM1.7 billion, with the other components consisting of office and retail lots and a hotel.

The mixed-use development will be located on a 12.72-acre (5.15ha) site in Section 13, Petaling Jaya that previously housed F&N’s dairy manufacturing plant.

F&N chief financial officer Soon Wing Chong told a press conference yesterday that the entire integrated residential and commercial development will take five to six years to complete. The project is a joint venture between F&N and Singapore-based FCL Centrepoint Pte Ltd.

Soon said the company has already obtained approval to convert the status of the land from industrial to commercial, with its lease extended to 99 years from the remaining 46 years.

Meanwhile, Somsak said F&N will focus on expanding its presence in Myanmar, Vietnam, Laos and Cambodia over the next few years.

It has been reported that the food and beverage (F&B) group is targeting to double F&N Dairies Malaysia’s exports to RM400 million within five years’ time. “Currently we export to more than 40 countries around the world,” Somsak said.

He added that the group will leverage its halal hub in Pulau Indah, Selangor, which is F&N’s second dairy plant. Its first dairy plant in Rojana, Thailand, began operations in 2009.

“We want to be more aggressive on exports by widening our footprint in countries such as those in the Middle East and Africa,” said Somsak, adding that the group spends 5% to 10% of its revenue on advertising and promotion activities each year to grow its brand.

On whether there will be price adjustments on its products, he said there are a lot of aspects to look at before adjusting the prices. “We have to look at the competitiveness in the market. We should be very careful and mindful of that.”

F&N currently has sufficient capacity to cater to its export markets, said Somsak, adding that it does not have any plans to build more plants over the next few years.

Commenting on the political situation in Thailand, he said business was going on as usual at its plant there.

“We have to ensure our supply chain runs well. We have already distributed the products in advance to Bangkok so that they (the retailers) will have enough stock to cover during the critical times.

Somsak: We want to be more aggressive on exports by widening our footprint in countries such as those in the Middle East and Africa.

This article first appeared in The Edge Financial Daily, on January 24, 2014.