LEADING rubberwood furniture manufacturer Sand Nisko Capital Bhd (formerly Len Cheong Holding Bhd) has set its sight on developing a sustainable property project in Melaka by ‘greening’ it with prospects of bio-farming/agro tourism and renewable energy tapping.
Yesterday (Dec 1), the company’s wholly-owned subsidiary Len Cheong Resources Sdn Bhd has entered into a joint venture agreement (JVA) with Mutiara Mahajuta Sdn Bhd for a dual phase development of a piece of 162-acre land in Alor Gajah.
The first phase of development entails the right to plant oil palm, rubber trees, fruit trees or high quality forest trees with higher yields, while phase two of the JVA provides the right to develop the land into a mixed development project.
Mutiara Mahajuta which represents a group of individual landowners has 30 years of land rights with an option to extend for an additional 15 years.
“We are excited with the joint venture that we entered with Mutiara as this long-term, dual phase development will help to ensure sustainable growth for the group,” commented Sand Nisko’s managing director Emily Sow Mei Chet.
“Under the first phase, this JV will establish a sustainable aquaponics solar farm while the mixed development in phase two consists of residential, commercial and industrial buildings.”
More specifically, the project consists of three components, namely (i) aquaponics farm which combines aquaculture with hydroponics farming; (ii) solar photovoltaic energy generation facility with capacity of up to 100MW; and (iii) the setting-up of a dedicated agro-tourism centre that is complete with farm, fruit orchard and marketplace.
As the group has only secured 162 acres of the total land size of round 500 acres in the vicinity, Sow noted that the untapped land provides an excellent opportunity for Sand Nisko to enlarge its future land acreage.
“It is a very strategic move for Sand Nisko to lock in the greenfield land earlier and still enjoy the benefits from the land’s brownfield agricultural cultivation before the final conversion into a mixed development project,” she envisages.
The land is accessible within 20 minutes from the Simpang Ampat toll plaza on the North-South Expressway and within 15-20 minutes’ drive away from Alor Gajah, Taman Cheng and the Melaka town.
From the environmental, social and governance (ESG) perspective, the JV project offers a good opportunity for Sand Nisko to reduce its carbon footprint while the aquaponics farm and agro-tourism centre are also expected to open job prospects and encourage entrepreneurship, especially among the local communities,.
On top of that, the group’s involvement in the agriculture business also allows Sand Nisko to contribute to national food security in line with the National Agrofood Policy 2021-2030.
“Above all else, the proposed project is expected to bring long-term earnings visibility for the group while ensuring the financial stability for Sand Nisko,” added Sow.
Sand Nisko intends to fund the project via a combination of internally generated funds, bank borrowings and/or other form of fund-raising exercise.
At the close of yesterday’s trading, Sand Nisko was unchanged at 67 sen with 4.22 million shares traded, thus valuing the company at RM155 mil. – Dec 2, 2021
