Johan expects RM70mil profit from Puchong project

KUALA LUMPUR: Johan Holdings Bhd expects gross development profit of RM69.5mil from phase one of its proposed mixed development project in Puchong, Selangor.

Johan said yesterday it proposes to undertake the project on six acres of the 27-acre site. The ceramic operations under Prestige Ceramics Sdn Bhd is located on the site but the company is winding up the operations.

Johan, whose core activities include making ceramic products, floor tiles and property development, had on Sept 26 submitted an application to the Sepang Municipal Council for a development order for the mixed development.

“The total gross development value for phase one is projected at RM364.4mil. The gross development cost, inclusive of re-valued land cost, is projected at RM294.9mil, giving a projected gross development profit of RM69.5mil,” it said.

The company said the application process for the phase one of the development plan could take up to 12 months from the submission date of Sept 26, 2017. It said the development period for phase one was about three years.

To recap, since 1979, Johan has diversified from its tin mining business through acquisitions and organic growth.

Its core businesses include the franchise operator for Diners Club charge and credit cards, travel and tours, manufacture of ceramics wall and floor tiles, property development, resorts and hotels.

Johan said the proposed development was expected to improve the group’s performance in the future and enable it to diversify its revenue and earnings base to include property development from its existing Diners Club card services and hospitality businesses.