Fututech plans property projects worth RM500mil

KUALA LUMPUR: Construction firm Fututech Bhd’s executive director Datuk Tee Eng Ho had a flight to catch about two hours after the company’s AGM.

He managed to gobble down a bit of fried bihun (rice noodles) before catching a flight to Penang, an important market for the company.

“Penang, the Klang Valley and Johor are equally important markets,” he told reporters after its AGM.

Fututech has worked with the country’s top developers like Eastern & Oriental Bhd, Eco World Development Group Bhd and SP Setia Bhd.

Constructing high-end, high-rise buildings is its specialty. “And we complete it within the timeline set,” he quipped.

It is also building its own houses now. In the last quarter, it will be launching Vista Residences at Gohtong Jaya, a town in Genting Highlands. It will be offering 378 fully furnished serviced apartments at RM700 per sq ft.

The leasehold project is worth about RM300mil and has seen encouraging interest, he said.

Next year, it plans to launch 349 condominiums at Monterez Golf and Country Club in Shah Alam. Projection for the plan is at RM200mil.

The company was a manufacturer before it transformed into a construction player in the 1990s.

For construction work, it has ongoing contracts valued at RM130mil.

Fututech’s revenue came largely from the construction arm for the financial year ended Dec 31, 2014 (FY14), while 20% came from its manufacturing division.

It manufactures kitchen sets and installs them for housing projects.

Construction revenue for FY14 was at RM78.16mil, while manufacturing raked in RM11.55mil.

He said the company was tendering for kitchen cabinets and wardrobes for SP Setia projects, while it was in early discussion with Eco World for kitchen contracts.

But growth from the company will be from a related-party deal, in which Tee and his family will inject two private firms into the listed company Fututech.

Fututech is in the process of buying Kerjaya Prospek (M) Sdn Bhd and Permatang Bakti Sdn Bhd for RM380mil.

The purchase will be done by issuing 280 million new Fututech shares at RM1.16 apiece and the remaining RM55.2mil in cash.

Kerjaya Prospek has secured jobs valued at RM2.3bil while it is bidding for new jobs worth RM1.8bil.

“Post-merger, we will be an end-to-end construction group,” he said, expecting the deal to be done in the third quarter.

Tee also has a private property development firm. Asked if he would also inject the company into Fututech, he said: “Not at the moment, but I don’t discount that possibility in the future. We want to do things step by step.”

Fututech’s shares have jumped over 40% since the announcement of the deal to RM1.64 yesterday.