KUALA LUMPUR: Property developer Ken Holdings Bhd is planning a RM80mil project, comprising hotels and service apartments, in Kelantan this year as it seeks to expand revenue base to the east coast.
Group executive chairman Datuk Kenny Tan said the proposed development in Kelantan would have 200 service apartments and a 150-room hotel on an acre next to the Kota Bharu Mall.
“We have received the necessary approvals. At the moment, we are making some amendments. This project is a joint venture with the Kelantan state,” he told reporters after Ken Holdings’ AGM yesterday.
He added that the company had also earmarked several hotel developments on its existing landbank, such as in Genting Highlands, Johor Baru and Shah Alam, in line with its plan to increase recurring income moving forward.
Currently, the company has a landbank of 112 acres in Pahang, Malacca, Penang, Perak and Johor Baru, which would keep it busy for the next 10 to 15 years. It has unbilled sales of RM230mil.
Ken is also expected to start churning more than RM10mil a year of recurring income by year-end from the rental of its Menara Ken @ TTDI office tower in Taman Tun Dr Ismail.
Tan envisaged that the building, which is located along Jalan Burhanuddin Helmi would be completed by the end of this year.
The group has reportedly invested RM120mil in Ken TTDI project.
Menara Ken @ TTDI boasts platinum-grade office spaces, an art gallery, a performing arts theatre, a roof-top pool, a sky bar, a gymnasium and a vast variety of F&B outlets.
“It is expected to provide a long-term recurring income for the Ken group,” he added.
For the financial year ended Dec 31, 2014 (FY14), Ken posted a 53% rise in net profit to RM31.95mil from RM20.90mil previously. Revenue rose to RM91.08mil in FY14 from RM55.83mil a year ago.
Tan said the company was also looking to launch its Ken Rimba Condominium 2 in Shah Alam, which would have a 240-unit condominium, by end-2015.
“The total GDV of Ken Rimba Condominium 1 project is about RM340mil and we have developed about 15% of the project,” he said.
The Ken Rimba Condominium 1 is part of the Ken Rimba township, comprising 653 units in three blocks of condominiums and 26 pool villas. The first phase of the project was launched in July last year, with a take-up rate of 75% for the entire project.
Source from http://www.thestar.com.my/Business/Business-News/2015/04/14/Ken-Holdings-plans-RM80mil-project-in-Kelantan/?style=biz