Snippets
Vizione sees steady demand for affordable housing
Ho Chung Teng 06 Sep 2017 16:39
Vizione MD Datuk Ng Aun Hooi.

Vizione Holdings Bhd does not expect a glut in the affordable housing segment following the government’s move to introduce one million affordable housing units by year end.

In 2013, the government has said it will build one million affordable houses within the next five years. In August, Urban Well-being, Housing and Local Government Ministry said that as of April 2017, the total number of affordable homes targeted for construction stood at 875,490, of which 237,738 units had been fully completed.

Vizione MD Datuk Ng Aun Hooi tells FocusM that within the next two years, the Kuala Lumpur-based construction company will continue to see a significant number of affordable housing projects entering the market.

Ng says the increase in affordable housing demand is also due easier access to loans, unlike when buying more expensive houses following tighter financing controls by Bank Negara.

He adds that Vizione expects a recovery in the housing segment, backed by the improving loans approval. “This is the right product that developers and government are pushing,” he says.

Currently, Vizione has a RM3 bil order book and is currently tendering for RM1.5 bil worth of projects. It has a historical success rate of 40%-50% of securing projects.

Earlier at the company EGM on Sept 6, Vizione shareholders approved the acquisition of Wira Syukur (M) Sdn Bhd (WSSB), of which Ng owns 51%, for RM280 mil. The acquisition will be satisfied via the combination of cash and issuance of new ordinary shares of Vizione at an issue price of 11 sen per share.

Concurrently, Vizione will undertake a private placement of up to 1.68 billion shares to fund the acquisition of Wira Syukur.

Ng says the acquisition of WSSB shall further enhance the construction earnings of Vizione.

“Post-acquisition, Vizione will continue to tender for more construction projects. Besides that, we will also embark and explore some smaller scale property development project by working closely or joint venture with the landowners. It is our intention to have diversified source of income stream for the company,” he adds.

Ng said the acquisition also mitigates the potential conflict of interest between Vizione and his interest in Wira Syukur.

“As a subsidiary of a listed corporation upon completion of the corporate exercise, it will provide access to the capital market for cost effective capital fund raising for WSSB,” he explained.

Wira Syukur is a Grade G7 contractor with CIDB and registered with the Master Builders Association Malaysia. WSSB has successfully completed construction projects with a total contract value exceeding RM800 mil.