KUALA LUMPUR: PPB Group Bhd expects its forthcoming property project, Puteri Harbour, to contribute positively to the group's bottomline over the next two years.
In the first six months of the year, the property segment contributed 19% to overall group profits of RM156 million.
"We expect the percentage to increase with the coming on stream of this project in 2015," said Managing Director Lim Soon Huat.
PPB Group Bhd will undertake the construction of Puteri Harbour, in Nusajaya, a mixed development of landed and high-rise residential and commercial properties, via its 28 per cent stake in Southern Marina Sdn Bhd.
He said the group has been working to strengthen its property segment following its participation in Johor's Iskandar Malaysia.
The Puteri Harbour project would have a gross floor area of more than 2 million sq ft and an estimated gross development value exceeding RM1.5 billion.
"We are bullish on Iskandar development projects as more demand for the industrial properties will generate a good growth for residential and commercial properties in Johor," he told a press conference here today.
Meanwhile, Chief Operating Officer for Properties Chew Hwei Yeow said the project was scheduled to be launched in the middle of next year.
PPB allocated RM528 million to expand its business over the next two years, out of which RM60 million would be allocated for property investment and development.
"We have allocated RM40 million for the development of Puteri Harbour," Chew added.
Located strategically to the second link to Singapore, the group expects a strong interest in terms of sales from local and foreign buyers.
"With the plan that we have, we believe the response for this project, would be overwhelming," said Chew. - Bernama
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