ML Global seeks to diversify into property development

KUALA LUMPUR: Property management and construction firm ML Global Bhd, which last month entered into a joint-venture mixed development project in Petaling Jaya, is proposing to diversify into property development and investment.

In a filing with Bursa Malaysia, ML Global said that apart from that project, the group was exploring, discussing and negotiating with other parties to acquire more land and/or to undertake other similar small to medium-scale property development projects via joint ventures.

“In view of this, the board expects ML Global group’s existing business activities to be diversified to include property development and property investment,” the company said

“Barring unforeseen circumstances, the board anticipates the net profit from the new businesses may contribute more than 25% of the total net profits of the group in future financial years.”

The company’s indirect wholly-owned subsidiary, Delta Gallery Sdn Bhd (DGSB), last month signed a joint-venture agreement with Alaf Cahaya Development Sdn Bhd to develop a mixed development project on 18,965.72 sq m leasehold land in Kota Damansara, Petaling Jaya.

Alaf Cahaya has appointed MITC Engineering Sdn Bhd (MITCE), a wholly-owned subsidiary of ML Global, as the main contractor for the project.

The development project will have two phases: four-storey shops (Alaf Cahaya had sold 10 units prior to the JV agreement) and 398 service apartments on 24 storeys.

The project has an estimated gross development value of about RM270mil, ML Global said.

ML Global, which ceased its loss-making manufacturing business in July last year, is focusing mainly on the construction business currently.

“The company had completed the acquisition of MITCE, which is involved in the construction business, on Nov 28, 2016. With the combined order book from the new subsidiary, MITCE, the ML Global group’s on hand construction projects are widely located in the Klang Valley, Johor and Pahang,” it said.

“The on-going projects are mainly residential properties comprising high-rise and landed as well as commercial properties such as shop lots. However, the group will maintain its momentum to secure more construction and property development projects for potential additional revenue stream.”