JAG TO DI­VER­SIFY INTO PROPERT Y DE­VEL­OP­MENT

Com­pany to de­velop mixed project with es­ti­mated GDV of up to RM170m

New Straits Times - - Business - FARAH ADILLA KUALA LUMPUR farah.adilla@me­di­aprima.com

JAG Bhd will be­gin di­ver­si­fy­ing into prop­erty de­vel­op­ment with a three­p­hase mixed de­vel­op­ment project of­fer­ing shop of­fices, of­fice suites and res­i­den­tial apart­ments in Klang, Se­lan­gor.

With a gross de­vel­op­ment value (GDV) ex­pected to range be­tween RM155 mil­lion and RM170 mil­lion, the project will trans­late to a gross profit of be­tween RM20 mil­lion and RM35 mil­lion.

The plan for di­ver­si­fi­ca­tion was passed by its share­hold­ers at JAG’s ex­tra­or­di­nary gen­eral meet­ing yes­ter­day.

JAG ex­ec­u­tive di­rec­tor Datuk Ng Meow Giak said the group was con­fi­dent of the strat­egy as it would en­able it to di­ver­sify its sources of rev­enue while re­duc­ing reliance on its waste man­age­ment and re­cy­cling busi­ness.

“Mov­ing for­ward, we will fo­cus on en­sur­ing the suc­cess of our maiden mixed-de­vel­op­ment project in Klang.

“We have re­cently re­ceived the de­vel­op­ment or­der from the au­thor­i­ties and are cur­rently fi­nal­is­ing de­tails from the as­pects of de­sign, con­cepts and po­si­tion­ing, and will launch the project in the third quar­ter of this year,” he said yes­ter­day.

JAG’s core busi­ness ac­tiv­ity is in the pro­cess­ing of elec­tronic and in­dus­trial waste.

It also ex­tracts and re­fines fer­rous, non-fer­rous and pre­cious me­tals.

The group is also in­volved in com­puter soft­ware de­vel­op­ment, main­te­nance and sup­port ser­vices, pro­vi­sion of mar­ket­ing sup­port, sys­tem in­te­gra­tion and net­work so­lu­tions as well as op­er­at­ing 24-hour coin­op­er­ated (self-op­er­ated) laun­dry busi­nesses.

Ng said the new prop­erty arm would con­trib­ute 25 per cent to the com­pany’s bot­tom line within five years.

“If we are able to achieve our tar­get faster, it would be all the bet­ter for us,” he said.

Mean­while, Ber­nama re­ported that the com­pany was tar­get­ing a 50:50 con­tri­bu­tion be­tween e-waste and prop­erty busi­nesses.

JAG’s prop­erty de­vel­op­ment and in­vest­ment busi­ness will be spear­headed by its wholly-owned sub­sidiary JAG Land Sdn Bhd.

JAG Land ac­quired land mea­sur­ing 13,489.5 sq m in Klang for RM9.87 mil­lion in Au­gust last year.

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