KPPB signs up for Penang development deal

PETALING JAYA: Kerjaya Prospek Property Bhd (KPPB) has entered into a joint-venture agreement with Aspen Vision City Sdn Bhd (AVC) to jointly develop a piece of freehold land in Aspen Vision City, Batu Kawan, Penang.

In a filing with Bursa Malaysia, KPPB said the development will be done via a special-purpose vehicle (SPV) wherein its wholly owned subsidiary, Kerjaya Property JV Sdn Bhd and AVC will hold 70% and 30% of shares in the SPV, respectively.

“The joint venture is undertaken for the purpose of jointly developing the land into a mixed development comprising hotel, residences, serviced apartments, retail units and/or office blocks in accordance with development approvals.

“The expected gross development value and development costs are subject to various factors including, among others, timing, economic conditions, market demand, the actual number of units to be developed and pricing of units.

“These and many other related factors cannot be determined at this juncture,” it said.

KPPB said the net book value of the land is RM25.1mil, based on the audited financial statements of AVC for the financial year ended June 30, 2023.

“The land is strategically located in Batu Kawan and is a well-sought-after location by investors.”

Additionally, the group said the joint-venture agreement will enable KPPB to focus on its core business of property development.

“The proposed development will add to KPPB’s future project pipeline and income streams.”

For its third quarter ended Dec 31, 2023, KPPB reported a net profit of RM23.91mil, compared with RM23.53mil in the previous corresponding period, while revenue improved to RM99.32mil against RM81.81mil previously.

Basic earnings per share stood at 6.46 sen, compared with 5.99 sen a year earlier.

For the nine-month period ended Dec 31, 2023, KPPB’s net profit increased to RM68.5mil from RM67.77mil previously, while revenue grew to RM283mil from RM256.57mil a year earlier.

Given its nine-month financial performance, KPPB said in its filing with Bursa Malaysia that it is cautiously optimistic of concluding the year on a positive note.

This, the company said, is augmented by the completion of its mixed-development project, Bloomsvale @ Old Klang Road, consisting of serviced apartments, office suites, shopping gallery and the Courtyard by Marriot KL South four-star hotel.

“This development augurs great prospects for the group to continue boosting its recurring earnings visibility and the overall financial performances.

“Going forward this year, we are well prepared to launch our latest projects in Sentul and Shah Alam, with a total gross development value of RM395mil as we are of the opinion that the property segment remains optimistic.”

KPPB added that its property development segment continues to be the main contributor to its performance.

“With our healthy and resilient financial position, we are well-positioned to pursue land acquisitions to replenish our current 61-acre land bank located in strategic locations.

“This is to ensure our future development projects are not interrupted. Supported by our strategic decision making and prudent cost management, we will continue to monitor the property market demand and to grow our business sustainably.”