/// West Malaysia Property News
Construction Sector
Output to Surpass
Last Year’s RM93
Billion, Says MBAM
Hap Seng Plans Projects Worth RM1 Billion in Klang Valley
“Our Horizon and Nadi Bangsar
high-end residences continue
to receive strong uptake despite
the various cooling measures
introduced under Budget 2014,”
he told reporters after the firm’s
AGM recently.
Lee said the group plan to launch
a high-end residential project
opposite the Japanese Embassy
with RM900 million GDV this year.
The construction sector’s output this
year looks set to surpass last year’s
RM93 billion, fuelled by ongoing and
new public sector projects.
The sector has seen a year-on-year
growth of 20% for the first quarter,
boding well for the entire year’s
prospects, Master Builders Association
Malaysia (MBAM) president Matthew
Tee said.
Despite the sector unlikely to surpass
the historical high of RM120 billion
in 2012, the outlook for the next five
to six years looks rosy thanks to the
projects being undertaken by the
government to bolster the economy
and improve infrastructure, he added.
The implementation of the ongoing
Economic Transformation Programme,
Pan Borneo Highway in Sabah and
Sarawak, as well as public transport
projects such as the light rail transit,
mass rapid transit and high-speed
rail link between Kuala Lumpur and
Singapore are expected to translate
into healthy growth for the sector.
Tee was speaking to reporters after the
launch of MBAM’s coffee table book by
Deputy Works Minister Datuk Rosnah
Abdul Rashid Shirlin to commemorate
the association’s 60th anniversary this
year.
Hap Seng Consolidated Bhd is
beefing up its property unit and
aims to launch several property
projects, mainly in prime locations
in the Klang Valley, with total gross
development value (GDV) worth
more than RM1 billion within the
next two years.
Group managing director Datuk
Edward Lee Ming Foo said the
group is optimistic to further grow
its property arm, especially in the
high-end residence market despite
challenges posed by the cooling
measures introduced last year.
“We aim to increase our current
landbank, mainly in prime
locations of the Klang Valley,”
he said, adding that Hap Seng’s
current landbank currently stood
at 2,350 acres, with 235 acres in
the Klang Valley.
Lee said the group may consider
to spin-off its property unit to a
separate listed entity
“At the moment we do not have
a concrete plan to list any of our
core businesses, but we are always
looking at the option.
“As for now we are concentrating
to grow our businesses,” he said.
“This division is well-set to tap
into the growing demand of the
burgeoning mega infrastructure
projects and construction
activities,” he added.
“We also want our quarry
and building materials unit to
complement our expansion in the
property sector.”
Hap Seng recorded a 22% jump
in net profit to RM125.4 million
in the first quarter ended March
31, 2014, from RM102.8 million
previously.
Hap Seng has allocated RM300
million in capital expenditure for
the group operations this year.
The campaign also attracted
buyers from overseas.
Tropicana Corp Bhd secured a
whopping RM600 million in new
sales during a six week campaign
period that ended May 31.
“The government shouldn’t implement
all the projects at one go, but to
carry them out periodically. This
will prevent the construction sector
from overheating and help contain
escalating raw material prices,” Tee
said.
The success of the sales
campaign, the company said, was
underpinned by strong demand
at its exclusive projects across the
prime hotspots of Penang, Klang
Valley, Iskandar Malaysia and Kota
Kinabalu.
www.PropertyHunter.com.my
Its property arm is the group’s
largest profit contr X