KUALA LUMPUR: Kedah-based property player Keladi Maju Bhd plans to build high-end properties on the 5.66ha prime land it is buying from Goh Ban Huat Bhd (GBH) in Mukim Batu, Segambut, confirming market talk that it will be making its maiden foray into the high-end residential market in its first venture in the Klang Valley.
Managing director Datuk Chuah Chin Ah said plans for the development are still in the very early stages, but affirmed that the land in Segambut carries a gross development value (GDV) of RM1.5 billion, and that Keladi Maju plans to undertake the project all by itself.
He was speaking to reporters after the group’s annual general meeting yesterday.
Keladi Maju, which is also a palm oil producer, has been in the limelight following its proposed acquisition of the GBH land for RM192.37 million. It made an announcement on this to Bursa Malaysia on July 2.
On July 24, its shares surged to a seven-year high of 42.5 sen on speculation that the company would venture into high-end properties. The counter closed 1.18% lower at 42 sen yesterday with 4.77 million shares changing hands, translating to a market capitalisation of RM318.5 million.
Asked if there would be more upcoming land deals, Chuah said: “We are always on the lookout for good land. If [it] comes with oil palm trees, then it will be better as it has recurring income from oil palm harvesting. There is no definitive term on the type of land that we are looking to acquire.”
The group’s chairman and non-independent non-executive director Tan Sri Tan Hua Choon said GBH is consolidating its assets but declined to reveal what GBH is planning to do next.
The transfer of land from GBH to Keladi Maju is part of an asset-unlocking exercise by Tan, who is a substantial shareholder in both firms.
GBH is paving the way for a reverse takeover (RTO) by Dynac Sdn Bhd to gain immediate access into the oil and gas industry. The deal would be partly financed by the proceeds gained from the sale of several pieces of land to Keladi Maju.
Apart from GBH and Keladi Maju, Tan also sits on the board of FCW Holdings Bhd, Marco Holdings Bhd and Jasa Kita Bhd.
Meanwhile, Chuah said Keladi Maju’s results for its second quarter ended July 31 (2QFY15) would be “comparable” with the previous corresponding quarter (2QFY14).
It raked in a net profit of RM6.36 million in 2QFY14, a drop of 5.44% from RM6.73 million a year earlier. Revenue dropped 37.31% to RM17.38 million from RM27.7 million a year ago.
In a result note dated Sept 17, 2013, it said the decline in performance was mainly due to lower income recognition from property development and lower revenue from the sales of fresh fruit bunches.
Its estimated revenue of RM58 million for FY15 is expected to be similar to what it made in FY14, said Chuah.
“We expect good take-up rates for our launches this year. We are very confident because most of our products are sold out. We will not be slowing down on our launches,” he added.
The estimated GDV of the group’s new launches for FY15 is about RM58 million. Chua said the group has launched projects worth some RM15 million to date; the remaining RM43 million will be launched in the near future.
That includes its new developments in Taman Desa Cinta Sayang and Taman Puteri in Kedah.
Taman Desa Cinta Sayang will have 455 single-storey medium-cost terrace houses, 152 shop houses, and a petrol station.
Taman Puteri, with GDV of RM240 million, comprises 1,585 residential and commercial properties.
Keladi Maju currently owns 1,182 acres of estate land, 133 acres of vacant land and 167 acres of land under development.
This article first appeared in The Edge Financial Daily, on August 1, 2014.
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