Mega Sun eyes property development to raise income

  • Business
  • Monday, 15 Jul 2019

Scomi Group Bhd surprised investors when it proposed to revise its current issued share capital reduction from RM224.96mil to RM3mil from the earlier RM40mil.

GEORGE TOWN: Property management-based Mega Sun City Holdings Bhd is eyeing diversifying into property development to broaden its income base.

According to group managing director Datuk Thomas Liang, the company is looking at reducing the contribution from its core property management business by 80% from 100% currently.

He told StarBiz after Mega Sun’s recent AGM that “we are aiming for the property development business to generate about 20% of our total revenue”.

“We should be able to achieve this ratio in five years,” added Liang.

Towards this end, the group is now looking at new landbank acquisitions nationwide.

Liang pointed out that “currently, we are exploring buying landbank in strategic locations in the Klang Valley and Penang”.

“We also believe that foreign direct investment will return to Malaysia as early as next year, with the economy starting to improve within the next three to four years.

“Hence, Mega Sun will need landbank to be in a better position to deliver housing products that will be required by an economy which is experiencing a recovery,” he explained.

Liang planned to launch the group’s first mixed-development project in 2021.

He noted that the product type would be planned with meticulous deliberation after taking into consideration the current trends, the environment of the properties, pricing and the timing of further projects.

The group will also explore providing turnkey contracting services for other developers.

“We are currently negotiating to provide turnkey contracting services for a number of developers in the Klang Valley,” he added.

On its property management business, Liang said Mega Sun would explore other business opportunities in the central part of the country.

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