MK Land aims high for key project


PROPERTY developer MK Land Bhd hopes to achieve sales of RM500mil from its key township project of Damansara Perdana in Selangor in the financial year ending June 2004. 

Chief operating officer Peter Chan said the target could be achieved with the launch later this year of a 16-acre retail, commercial and condominium complex known as The Boulevard and the sale by year's end of the project’s first landed property bungalows. 

The expected sales would add significantly to the total sales-to-date of RM1.039bil since the 750-acre township project was first launched in 1996, he said. The total gross development value of the project has been estimated at some RM8.3bil when fully completed. 

Eg Kah Yee, President and CEO of Palette Multimedia Bhd (L) and Peter Chan, CEO of MK Land Bhd working on a laptop beside the swimming pool via WI-FI broadband internet access which is provided to all residents in the Damansara Perdana township

Chan was speaking to reporters after the signing of an agreement yesterday between MK Land subsidiary Saujana Triangle Sdn Bhd, which is undertaking the development of Damansara Perdana, and Mesdaq-listed Palette Multimedia Bhd for the installation and management of broadband intranet and wireless-enabled facilities for the entire development. 

Chan said the facilities would make the development Malaysia’s first “e-lifestyle township” where a wireless-ready network supported by a gigabit Internet backbone would link residential areas with offices and public areas such as shopping centres, swimming pools and conference centres. 

“We are targeting young professionals between the ages of 25 and 35,” he said, highlighting that Internet access had become as much a necessity as electricity and water for this age group. 

He declined, however, to elaborate on the financial aspects of the contract beyond saying it was a “multi-million ringgit” one and likely to spread over eight years. 

“We would rather not state the exact amount,” he said, when asked how much MK Land would be spending. 

Chan said almost all the residential units and shop units put up for sale at the development had been sold. As evidenced by the good demand, analysts were also confident of the group’s performance going forward. 

On future plans for the group, which is currently developing nine projects in Selangor, Perak and Kedah, Chan said it was actively searching for opportunities in Johor and Penang as well. “We are looking to expand there?on a joint-venture basis, in partnership with the state governments or through acquisitions,” he said. 

The group currently has an undeveloped land-bank of 5,500 acres, of which about 630 acres are in the prime Petaling Jaya area. MK Land achieved sales of RM861mil for the year ended June 2003, and analysts expect the annual figure to grow to some RM1bil next year. 

An analyst with Mayban Research had earlier told Star Bizweek that the impressive take-up rates for the Damansara Perdana and Damansara Damai projects reflect the stable demand for quality properties in this area. 

The group’s “lock-in” sales of RM760mil as at June 2003 were perhaps one of the sector’s highest, he said, adding that the group has had a good track record over the past seven years, chalking up sales of 34,615 property units for RM3.4bil. 

Its turnover and earnings per share had grown by a three-year compounded annual rate of 28.4% and 57.4% respectively while total borrowings stood at RM397.8mil as at June 2003 but its gearing ratio of 0.5 times was still comfortable, the analyst said. 

In a late announcement to the KLSE yesterday, MK Land said it had met the minimum 25% public spread requirement after placing out 117.44 million shares as part of the acquisition of four companies. 

It said the shares were placed out at RM1.80 each, of which local funds took up 45% and foreign funds the remainder of the placement shares. 

Stock watch on ML Land

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