MAIN Market-listed niche property developer Jiankun International Bhd is pushing past the COVID-19 pandemic with a commercial development comprising hotel and resorts, business premises and residential development under a reclamation and development agreement (RDA) with the Melaka State Government.
The RDA inked today by the group’s indirect wholly owned subsidiary Embon Global Venture Sdn Bhd with the Melaka State Government entails the reclamation and development of a 30-acre reclaimed land in Bandar XLIV which is located in the central Melaka district.
“We’re excited with the RDA signed with the Melaka State Government which puts Jiankun in a good position to diversify away from the reliance on our property development business,” commented Jiankun’s executive director/CEO Edwin Silvester Das.
“The RDA enables the group to venture into the tourism segment with commercial development comprising hotels and resorts.”
As Melaka is one of the most popular tourists’ destinations in Malaysia, Das expects the state to regain its glory days as one of Malaysia’s most sought-after destinations with its rich cultural heritage in the post-COVID world.
“While the recovery pace of the tourism industry relies heavily on the management of the pandemic globally – and with global travel unlikely to recover to pre-pandemic level before 2023, opening in 2023-plus is likely to be good timing for most markets,” he reckoned.
A filing with Bursa Malaysia reveals that Embon Gobal expects to complete the development project within 12 months from the date of work commencement, thus enabling the resort to open within the 2023-plus period.
The draft of the development plan which is still subject to the necessary regulatory approvals consists of commercial development encompassing hotels and resorts, business premises and residential development with condominiums and serviced apartments.
“The timing of the development puts the group in a good position to ride on the tourism industry recovery of which augurs well with Jiankun’s long-term growth strategy,” projected Das.
Aside from that, he is also confident that the RM5.7 mil initial investment into the reclamation concession right will increase the group’s land bank by circa 30 acres, hence putting Jiankun in a strong position to ride on the gradual economy reopening and adjustment to the new normal.
In a way, the reclamation and development work also helps to drive the recovery of Melaka’s economy in the near term which bodes well for the state’s long-term.
At the close of today’s trading, Jiankun was down 0.5 sen or 1.64% to 30 sen with 1.56 million shares traded, thus valuing the company at RM63 mil. – Aug 26, 2021
