RUBBERWOOD furniture maker Sand Nisko Capital Bhd (formerly Len Cheong Holding Bhd) is fast firming up its grip in the Melaka construction scene with a real estate project underway.
Yesterday, the company via its wholly-owned subsidiary Len Cheong Resources Sdn Bhd inked a joint venture (JV) agreement with Prof Datuk Dr Raduan Che Rose (landowner) for a residential development project in Mukim Durian Tunggal, Alor Gajah, Melaka.
With this project, Len Chong Resources shall explore possibilities of working with landowners of surrounding lands with the aim of establishing a mini township in the area with an estimated gross development value (GDV) of RM50 mil.
A filing with Bursa Malaysia shows that Len Chong Resources’ role involves the application for approvals from the appropriate authorities as well as to oversee construction works and completion of building units.
In return, 12% of the total developed units will be part of the landowner’s entitlement.
“This JV represents a strategic opportunity for the group to increase its land bank in Melaka for undertaking new property development projects, thereby ensuring growth and sustainability of revenue and profitability for the group in future years,” commented Sand Nisko’s managing director Emily Sow Mei Chet.
She further noted that Mukim Durian Tunggal is situated in a mature location which is ready for development.
“This area is strategically located, being approximately less than 2 km from Universiti Teknikal Malaysia Melaka (UTEM) and the North-South Expressway’s Ayer Keroh Toll Plaza which is the gateway to Melaka,” she added.
Recall that in mid-July, Sand Nisko has strengthened its footing in the Melaka construction scene by winning a RM34.5 mil job comprising the development of landed houses, electrical sub-station, infrastructure works and factory extension works.
Sand Nisko posted a 64% jump in its net profit for its 1H FY2021 ended June 30, 2021 to RM3.83 mil from RM2.33 mil in the corresponding period a year ago.
At 9.49am, Sand Nisko was unchanged at RM1.29 with 1.13 million shares traded, thus valuing the company at RM146 mil. – Aug 24, 2021
