Fa­jar­baru eyes more prop­erty projects in Asia-Pac

Af­ter 2 suc­cess­ful launches in Aus­tralia, de­vel­oper is look­ing at other parts of Asia-Pa­cific

The Star Malaysia - StarBiz - - Front Page - By DALJIT DHESI daljit@thes­tar.com.my

PETALING JAYA: Af­ter em­bark­ing on a cou­ple of prop­erty de­vel­op­ments in Mel­bourne, Fa­jar­baru Builder Group Bhd is eye­ing more projects in other cities Down Un­der and in other mar­kets in the Asia-Pa­cific.

Group ex­ec­u­tive di­rec­tor Datuk Seri Eric Kuan told Star­Biz that af­ter its suc­cess­ful launch of two projects in Aus­tralia – Gar­den­hill and Paragon – the group is con­fi­dent of ven­tur­ing into other prop­erty mar­kets in the re­gion.

“We are on the look­out for prop­erty de­vel­op­ment op­por­tu­ni­ties in the re­gion, par­tic­u­larly in Asia-Pa­cific.

“Our ap­proach will be the same as in Mel­bourne, where we will part­ner lo­cal de­vel­op­ers or landown­ers as well as through ac­qui­si­tions.

“This will be our mid to long-term plan for Fa­jar­baru,’’ he told Star­Biz.

To date, the group has un­der­taken two prop­erty de­vel­op­ments in Aus­tralia and one in Malaysia.

Gar­den­hill was com­pleted in 2017 with a gross de­vel­op­ment value (GDV) of A$77mil and the units have been fully taken up.

Mean­while, Paragon was launched last year with a GDV of A$190mil and has a cur­rent take-up rate of 85%.

Its lat­est project in­volves a free­hold land in Mel­bourne that has been ear­marked for at least 15 dou­ble-storey town­houses.

On April 10, Fa­jar­baru an­nounced to Bursa Malaysia that it had, via a wholly-owned unit, ac­quired a 49% stake in Beu­lah North­cote Land Pty Ltd for A$98 (RM291.35).

Ad­di­tion­ally, it would in­ject up to A$2.99mil to sub­scribe for an ad­di­tional 2.99 mil­lion or­di­nary shares in Beu­lah, rep­re­sent­ing 49% of the to­tal in­creased is­sued cap­i­tal of A$6.1mil in Beu­lah. Fa­jar­baru ex­pects to com­plete the ac­qui­si­tion this month.

Mean­while, Kuan did not dis­count the pos­si­bil­ity of the group ven­tur­ing into other cities in Aus­tralia to fur­ther ex­pand its foot­print.

He said Mel­bourne is still the group’s main fo­cus as it is one of the top lo­ca­tion choices for Aus­tralian and in­ter­na­tional buy­ers when it comes to in­vest­ment in Aus­tralia. The city also of­fers good rental mar­ket.

He said the Aus­tralian prop­erty mar­ket would con­tinue to pro­vide a healthy in­come for the group in the com­ing years.

On the home front, Fa­jar­baru last year launched its first prop­erty de­vel­op­ment, Rica Res­i­dence, in Sen­tul.

The project re­ceived pos­i­tive re­sponse and is sched­uled to be com­pleted by 2021. The group is sched­uled to launch Rica Res­i­dence in Pu­chong later this year.

Rev­enue con­tri­bu­tion to the group from its con­struc­tion, prop­erty de­vel­op­ment and other busi­ness di­vi­sions cur­rently stands at 46%, 20% and 34%, re­spec­tively.

Fa­jar Baru’s shares on Fri­day closed un­changed at 69 sen, with a mar­ket cap­i­tal­i­sa­tion of RM259mil.

Kuan: We are on the look­out for prop­erty de­vel­op­ment op­por­tu­ni­ties in the re­gion, par­tic­u­larly in Asia-Pa­cific.

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