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F&N to redevelop PJ land

KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N) will redevelop the land in Petaling Jaya that has been housing its dairy manufacturing plant since 1959 to feature commercial and residential properties with gross development value (GDV) of at least RM1 billion.

The project is expected to kick start another major property venture for the group, which sees its development in Pudu coming to an end.

In the group's 2009/10 annual report released recently, F&N said the existing manufacturing plant in Section 13 would be relocated to Pulau Indah commencing end-2011.

F&N said its property division would, in the years to come, focus on transforming the 12.7-acre site into a notable landmark in Petaling Jaya, with the redevelopment to be undertaken in phases over a five- to eight-year period.

"Master planning for this redevelopment has commenced while waiting for the land to be vacated. Phase One, comprising commercial and residential properties, is expected to commence in 2012," the group noted.

F&N said the 12.7-acre site in Section 13 offered "great potential" and that its redevelopment was timely and expected to yield promising returns to the group's property division.

For the year ended Sept 30, 2010 (FY2010), F&N's property division contributed RM72.3 million to the group's total revenue of RM3.63 billion. In FY2009, the division chipped in RM62.9 million to a full-year revenue of RM3.27 billion.

F&N pointed out that its property division would continue its journey to unlock and enhance values of its existing landbank.

According to its annual report, the group has freehold land and buildings with net book value of RM90.9 million and RM260.5 million respectively, as at Sept 30, 2010.

These include 276,196 sq ft of freehold land in Fraser Business Park, Kuala Lumpur, for the development of shopoffices; 2.64 million sq ft of freehold land in Hulu Langat for the development of residential property; and 132,052 sq ft of freehold land in Johor Bahru for commercial property development.

F&N also said that the development of Phase 2 of Fraser Business Park, marketed as [email protected] Business Park, was completed and handed over at end-September, within the period under review. It has been renamed "Kompleks Metro Pudu" by the Kuala Lumpur City Hall.

Meanwhile, F&N's RM350 million dairy manufacturing plant in Pulau Indah is scheduled for completion in the second half of next year. With a planned annual capacity in excess of 14 million cases, the plant would together with the group's first greenfield condensery in Rojana, Thailand, generate a collective annual output of over 25 million cases.

The Pulau Indah plant is part of F&N's expansion plans to meet the growing demand for canned milk in Malaysia.

The group added that the plant's location within the "Selangor Halal Hub" would enable its dairies division to expand export opportunities to the fast-growing and untapped halal markets in the Middle East, Africa and Indonesia.

F&N's subsidiaries are primarily involved in the manufacturing and sale of soft drinks, dairy products, glass containers as well as property development activities and the provision of management services.

The group posted a net profit of RM695.3 million for FY2010, an almost three-fold increase from RM224.9 million a year ago, boosted by gains from the disposal of its glass-manufacturing unit during the year. Its net assets per share stood at RM5.03 as at Sept 30.

Shares of F&N on Monday, Dec 27 closed unchanged at RM14.88, with turnover of 217,600 units. The counter has risen 51.2% year-to-date.
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