KUALA LUMPUR: Kedah-based property developer Eupe Corp Bhd expects to launch its maiden Kuala Lumpur projects with a combined gross development value (GDV) of RM720mil this year.
Group managing director and chief executive officer Datuk Beh Huck Lee (pic) said the residential projects in Cheras and Bangsar, with a tentative GDV of RM260mil and RM460mil, respectively, would start contributing to the company’s earnings in the financial year ending Feb 28, 2016.
“We acquired land in Kuala Lumpur about two years ago. We have not obtained the relevant approvals yet, but will soon. We hope to kick off the projects by the third quarter of our current financial year,” he said.
Eupe, which began operations in 1986, has to date seven developments in Kedah, with a combined GDV of over RM1bil. Beh said the company would continue to expand in Kedah as well.
“Gradually, there will be a lot more emphasis on Kuala Lumpur,” he told StarBiz.
On the global front, the company has a presence in Australia. Last September, Eupe announced that its 70%-owned Australian subsidiary, Australasia Development Pty Ltd, had set up a 50%-owned company – The Surrey Sunbury Pty Ltd – as part of its expansion plans Down Under.
“We already have two developments in Australia and have earmarked a third project. It will be developed on about 200 acres and will sustain us for another eight years. This is because the take-up rates there are not as high or fast as in Malaysia.
“But Australia is not our main focus. We are there because we want to diversify our risks and grow our organisation,” said Beh.
For its third quarter ended Nov 30, 2013, Eupe’s net profit slipped to RM3.24mil from RM4.51mil previously, mainly due to lower profits from its hospitality and non-property-related businesses.
Revenue, meanwhile, increased to RM52.71mil from RM36.94mil a year earlier, mainly attributable to a higher construction volume due to new projects.
For the nine-month period ended Nov 30, net profit slipped to RM9.03mil from RM11.74mil in the previous corresponding period, while revenue increased to RM136.09mil from RM115.42mil previously.
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