PETALING JAYA: Property developer Ken Holdings Bhd is expecting a recurring income of about RM15mil per annum beginning financial year 2015 upon the completion of Ken TTDI, its major recurring income project.
Ken TTDI, a 13-storey office building, has up to 20,000 sq m of lettable area for office space and 4,000 sq m for food and beverage outlets.
“We are targeting Ken TTDI in Taman Tun Dr Ismail to be completed by early 2015, and have already opened it for leasing,” group managing director Sam C S Tan said after Ken’s AGM yesterday.
It has been reported that the group had invested RM120mil in Ken TTDI, the offices of which it aims to lease out while managing the block.
Tan explained that creating streams of recurring income was part of the group’s long-term strategy, while maintaining its core business in property development as its short and medium-term strategy.
Moving forward, he said the group planned to develop four hotels in Genting Highlands, Johor Baru, Kota Baru and Shah Alam that would provide additional recurring income.
The group will launch the fifth phase of the Ken Rimba township project in Shah Alam, comprising three blocks of 653 condominium units and 26 units of pool villas, within the second quarter of this year.
“This would be the first condominium development in our Ken Rimba township with an estimated gross development value of RM330mil,” Tan said, adding that the group also planned to build the second condominium project in Ken Rimba this year.
At the AGM, Tan said Ken shareholders had approved the group’s proposed share split involving the subdivision of one Ken share into shares of 50 sen each.
Yesterday, Ken shares were unchanged at RM2.20 on a volume of 13,600.
Tan expects the share split exercise to be completed within two months.
At the moment, he said the group had a landbank of 47.75ha in Johor Baru, Kota Baru and the Klang Valley, coupled with unbilled sales of RM60mil.
Tan believes the group would be able to sustain its growth this year riding on its ongoing projects – the Ken Rimba Jimbaran Residences project and the Ken Rimba Condominium project.
“Malaysia has a young population. We receive a lot of interest for our products from first-time home-buyers and young families for the connectivity, design and location we provide,” he explained.
Ken’s net profit for the financial year ended Dec 31, 2013 rose 27.2% to RM20.9mil from RM16.5mil in 2012, while revenue for 2013 increased marginally to RM55.8mil.