RHB recently visited the city of Elmina (Elmina), including Elmina Business Park (EBP), courtesy of Sime Darby Property.
“With more than MYR10bil worth of remaining gross development value at Elmina, we envisage ample potential opportunities for contractors to participate, be it residential, commercial, or industrial jobs,” said RHB in a recent report.
Contractors with exposure in Elmina include Kitacon, TSR Capital, TCS Group Holdings and Gamuda.
Kitacon is a contractor with a solid track record in Elmina, with at least MYR300mil worth of jobs awarded to the group under this township.
These include the Elmina Lakeside Mall and twin factories at EBP. Other contractors such as TCS have had jobs at Elmina, albeit on a smaller scale.
The remaining landbank of more than 1,000 acres at Elmina West and Kota Elmina should continue providing bright job prospects for contractors focused on township development, in RHB’s view.
Eastern & Oriental’s land at Elmina West (66 acres) could likely see the first launch of 360 stratified landed terrace houses in financial year 2025 (FY25) followed by more than 110 shophouses in FY26.
Recall that Kerjaya Prospek (KPG) secured a MYR25mil job in quarter three 2023 to undertake earthworks for said development at Elmina West.
“Henceforth, we envisage KPG clinching further jobs there, as the contractor has been actively involved in EAST’s Andaman Island development in Penang via contracts worth more than MYR1bil,” said RHB.
EBP 1 (536 acres) was launched in 2019 with lots for industrial buildings and ready-built factories already fully sold.
EBP 2 (906 acres) under the Signature Collection (26.2 acres) twin factory offering has seen a 100% take-up rate upon its launch in September.
This reflects growing demand for well-planned industrial spaces in the Klang Valley.
Back in Jul 2023, IJM Corp entered a joint venture with FMM Elmina to construct and develop two logistics hubs at Elmina with floor spaces and capacities totalling 500k sq ft and 110k pallets on 22 acres of freehold land.
Hence, RHB thinks future launches at EBP 2 may attract contractors with industrial building capabilities.
Pearl Computing Malaysia’s data centre (DC) at EBP (estimated capacity of 80MW) – being constructed by Gamuda for MYR1.7bil has reached a 2-4% completion rate in RHB’s view and is set for completion in 3Q26.
“While we do not view other upcoming DCs in EBP that soon, the ongoing construction of said DC by GAM may likely continue benefiting mechanical, electrical, and plumbing (MEP) contractors,” said RHB.
The MEP fit-out works portion of the DC is valued at MYR929mil and, as of late, AWC and LFE Corp have been awarded subcontracts related to MEP works for the DC being built by Gamuda.
Key downside risk identified by RHB is the longer-than-expected rollouts of projects at Elmina. – Oct 28, 2024
Main image: simedarbyproperty
