MARKET DEVELOPMENT
Hap Seng Plans RM1Bil Projects in Klang Valley
Hap Seng Plans RM1Bil Projects in Klang Valley
29/05/2014 (The Star) - Hap Seng Consolidated Bhd is beefing up its property unit, aiming to launch several property projects mainly in prime locations in the Klang Valley with total gross development value (GDV) worth more than RM1bil within the next two years.
Group managing director Datuk Edward Lee Ming Foo said the group was 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 Song’s current landbank currently stood at 2,350 acres, with 235 acres in the 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 yesterday.
Hap Seng has unbilled sales of RM500mil.
Lee said the group planned to launch a high-end residential project opposite the Japanese Embassy with RM900mil GDV this year.
He said the group is expecting its 30-storey Menara Hap Seng 2 to be completed by July this year, and the first tenant to move by September.
The office tower has 326,000 sq ft of nett lettable area.
Its property arm is the group’s largest profit contributor, more that 50% of its total operating profit in 2013.
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 always looking at the option.
“As for now we are concentrating to grow our businesses,” he said.
Hap Seng has allocated RM300mil in capital expenditure for the group operations this year.
On its plantation business, Lee expects the unit to perform better this year with the improvement in said crude palm oil prices by lower inventory levels and government biodiesel initiatives.
The group has a planted area of 35,697 ha, with 86% of mature areas.
Cimb Research in a report said it expects Hap Seng Plantations to post lower earnings in the second quarter of this year due to lower CPO sales volume.
Meanwhile, on Hap Seng quarry and building materials unit, Lee said the group plans to further expand it by adding one quary in Sabah and two in Peninsular Malaysia this year, on top of its existing 10 operating quarries.
“This division is well-set to tap into the growing demand of the burgeoning mega infrastructure projects and construction activities,” he said.
“We also want our quarry and building materials unit to compliment our expansion in the property sector,” he added.
Hap Seng recorded a 22% jump in net profit to RM125.4mil in the first quarter ended March 31, 2014, from RM102.8mil previously.
Group managing director Datuk Edward Lee Ming Foo said the group was 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 Song’s current landbank currently stood at 2,350 acres, with 235 acres in the 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 yesterday.
Hap Seng has unbilled sales of RM500mil.
Lee said the group planned to launch a high-end residential project opposite the Japanese Embassy with RM900mil GDV this year.
He said the group is expecting its 30-storey Menara Hap Seng 2 to be completed by July this year, and the first tenant to move by September.
The office tower has 326,000 sq ft of nett lettable area.
Its property arm is the group’s largest profit contributor, more that 50% of its total operating profit in 2013.
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 always looking at the option.
“As for now we are concentrating to grow our businesses,” he said.
Hap Seng has allocated RM300mil in capital expenditure for the group operations this year.
On its plantation business, Lee expects the unit to perform better this year with the improvement in said crude palm oil prices by lower inventory levels and government biodiesel initiatives.
The group has a planted area of 35,697 ha, with 86% of mature areas.
Cimb Research in a report said it expects Hap Seng Plantations to post lower earnings in the second quarter of this year due to lower CPO sales volume.
Meanwhile, on Hap Seng quarry and building materials unit, Lee said the group plans to further expand it by adding one quary in Sabah and two in Peninsular Malaysia this year, on top of its existing 10 operating quarries.
“This division is well-set to tap into the growing demand of the burgeoning mega infrastructure projects and construction activities,” he said.
“We also want our quarry and building materials unit to compliment our expansion in the property sector,” he added.
Hap Seng recorded a 22% jump in net profit to RM125.4mil in the first quarter ended March 31, 2014, from RM102.8mil previously.