JAG TO DIVERSIFY INTO PROPERT Y DEVELOPMENT

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

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.