Ken Holdings lines up projects worth RM700mil

  • Business
  • Monday, 22 Aug 2005

Ken Holdings Bhd has lined up several new and ongoing housing projects with an estimated gross development value (GDV) of about RM700mil. 

This amount comprises the GDV of KEN Damansara 2 (KD2) and 3 (KD3) in Petaling Jaya, KEN Bangsar Serviced Residences in Kuala Lumpur, a bungalow project in Penang, six phases of KEN Rimba Jaya in Shah Alam and 29 units of 2½-storey terrace houses in Sri Kembangan to be launched soon.  

The public-listed group’s completed property development projects are KEN Damansara 1 (KD1), and KEN Aman in Sri Kembangan with a total GDV of RM195 mil 

Its managing director Kenny B.K. Tan said the total GDV of the completed, ongoing and upcoming property development projects are about RM895mil while the book value for its upcoming construction projects is RM200 mil.  

Kenny B.K.Tan says he is confident of the property market and people should buy now as the interest rates are very low.

“I am still confident of the property market as our projects are all in good location. People should buy now as interest rates are very low,” he told StarBiz

The upcoming projects include: 

KEN Damansara 3: The smaller 1,000 sq ft unit will have a starting price of RM162,000 with no parking bay but the purchaser can buy one for RM18,000 although the cost is RM21,000. 

“Our profit margin will be very low. The idea is to enable purchasers to enjoy at least 20% to 30% capital gains. Piling work (on KD3) is half completed and the launch is scheduled for September or October,” Tan said, adding that the concept is to make KD3 the “greatest value condominium in Petaling Jaya”. 

Tan said KD2 is targeted for completion by June or July next year and would be completed 12 months ahead of schedule. 

  • KEN Rimba Jaya: This 70-acre freehold ongoing project in Section 16 Shah Alam will have about 5,000 mixed units comprising low and medium-cost apartments, terrace houses, shop houses, and condominiums. 

  • KEN Bangsar Serviced Residences: The group bought over a new 12½-storey commercial building with three basement car parks at the top of Bukit Bandaraya from Danaharta for about RM15 mil three months ago. It plans to turn the 100,000 sq ft building into a service apartment. 

    Tan said the group would be spending another RM15 mil to “tear up” the facade, change the roof and make other changes. 

    “I am excited over this project as it will be the only serviced apartment in Bangsar. We intend to sell only 40% of the units and rent out the rest to give us recurrent income,” he said, adding that he planned to build first and sell later.  

    He may also do three-level penthouses. 

    He said he would initially sell four penthouses. There will be 70 to 80 units with sizes ranging from 600 sq ft to 2,000 sq ft. The penthouse units will have 6,000 sq ft in size and will have high quality finishes where buyers need not do much renovation. 

  • Bungalow project in Penang:
  • The group bought a 2.8-acre freehold land in Batu Ferringhi from Danaharta. It plans to build 20 to 22 units of gated bungalows and semi-detached beachfront homes. 

    “This will be the first development in Penang to have beach front bungalows and we intend to create this niche project into the Millionaire’s Row of Batu Ferringhi. As such each semi-detached unit will be priced from RM1 mil and the bungalows from at least RM2 mil,” he said.  

    Tan said specialist engineering and construction would remain the core business contributing 50% of the group revenue in 2004. The other 50% is from property development. 

    “As of June 2005, our reported group gross profit is RM7.3mil and revenue up-to-date is RM24.7mil. Kenly (HK) Ltd continues to be the specialist-engineering arm of the group in Hong Kong. We are operating in a highly competitive environment in Hong Kong and have three major ongoing projects totalling HK$93 mil,” he added. 

    The group has zero gearing and all its projects are funded internally. 

    Tan said KEN Holdings would be launching its education fund during its 25th anniversary dinner on Sept 3.  

    “We plan to initially contribute 1% of our profit to this fund. We feel it is very important for people to receive a good education. Instead of merely giving money to the students, we want to meet them and guide them. We may hold dinners where the students from different disciplines can chat with our management team. We can tell them of our success stories to inspire and motivate them,” he added. 

     KEN :  [Stock Watch]  [News

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