NEXT REVENUE DRIVER
This is mainly through firm’s development project in Kota Petra, Sarawak
ZECON Bhd is planning several property projects to increase contribution from the sector. Its mixed development in Kota Petra, Sarawak, which is its biggest, will have an estimated gross development value of RM11 billion.
ZECON Bhd is expecting the property segment to drive the company’s growth and this would be carried out largely through its development project in Kota Petra, Sarawak.
Chief executive Syed Muzakir Al Joofre said the Kota Petra mixed-development would be the company’s largest property project, with an estimated gross development value of RM11 billion.
He said the company was evolving into a property player, with several projects in the pipeline for the next 15 years.
“The property sector only contributed between one and two per cent of revenue in the financial year ended June 30, compared to our construction business, which has been contributing a sizeable amount of revenue,” he said at a briefing, here, yesterday.
Zecon will gradually plan for the Kota Petra development after acquiring the state planning authority’s approval.
The housing projects in Kota Petra include 1Malaysia People’s Housing Programme (PR1MA) and 1Malaysia Civil Servants Housing Project (PPA1M), which will provide about 4,331 housing units.
“Our property projects will comprise tourism enclave, education city, state and federal administrative centre, medical city and affordable housing.”
He said the PR1MA project would consist of 1,065 units while PPA1M housing project would have 2,332 units.
In the Klang Valley, Zecon is developing the RM606 million specialist children’s hospital at Universiti Kebangsaan Malaysia Medical Centre through a publicprivate partnership on a build, lease, maintain and transfer concept.
He said the project would be completed in November next year and the 25-year concession was expected to contribute RM100 million to RM150 million annually beginning 2019.
Zecon is also completing several key projects, including the RM1.46 billion Pan-Borneo Highway Phase 1 through its joint-venture company, Kimlun Sdn Bhd.
As at June 30, Zecon’s outstanding order book stood at RM3.6 billion.
Its other projects are Hospital Petra Jaya, Kuching, Vista Tunku Phase 8 (two-storey supermall) in Kuching, PR1MA Homes at Vista Tunku, Petra Jaya and doublestorey terraced houses under PPA1M in Kuching.
Syed Muzakir said Zecon would not be tendering for any new project as it wanted to focus on delivering the current projects.