Selangor Dredging Bhd, which recently acquired 5.7 acres of prime land in Kuala Lumpur's Damansara Heights for RM50mil, will focus on property development, leasing and boutique hotel management to boost earnings.
Managing director Teh Lip Kim said the three divisions would be the company's key drivers of growth in future.
“Last year, we disposed of all our non-property related businesses and we aim to focus purely on the property sector,” Teh told reporters after the company AGM in Kuala Lumpur yesterday.
She said the Damansara Heights land purchase was financed through internally generated funds and bank borrowings.
“The land is marked for high-end bungalows,” said Teh, adding that the company aimed to be a niche developer, of high-end residential properties in good locations.
So far, Selangor Dredging has launched two property development projects - AmanSari in Puchong, Selangor, and Park Seven, located near Persiaran KLCC.
AmanSari is a 20-acre gated residential property project and the company's flagship development, while Park Seven consists of 105 luxury condominium units.
The projects have a combined gross development value of RM370mil and total sales from both projects have reached RM260mil.
Teh said Selangor Dredging was also serious in its foray into boutique hotel ownership and management business.
“We have invested RM40mil this year to convert our hotel, The Grand Maya, into an urban boutique resort hotel named Hotel Maya,” she said, adding that the boutique hotel used a lot of local content in terms of material and artworks.
Teh said the previous hotel had 280 rooms, while the new one had 207 rooms comprising 107 suites and 100 standard rooms.
“Our target markets are local and foreign travellers on leisure and business trips and those on honeymoon wanting a unique experience in hotel accommodation,” she said.
Room rates start from RM500 per day.
For the financial year ended March 31, Selangor Dredging registered RM19.93mil in pre-tax, compared with RM13.44mil the previous year. Revenue also increased to RM71.67mil from RM61.36mil.