ACE MARKET-listed radio frequency identification (RFID) solution provider, SMTrack Bhd seems to be taking a plunge into the property sector given it is in an advanced discussion stage with the relevant parties to participate in a RM1.2 bil re-development project in the vicinity of Kampong Bharu, Kuala Lumpur.
Recall that on Jan 26, Jiankun International Bhd has inked a joint venture (JV) agreement with Menara Rezeki Sdn Bhd and Menara Rezeki Properties Sdn Bhd to undertake re-development of the existing Flat PKNS Jalan Tun Razak in Kampong Bharu.
“The high-level negotiations with Jiankun on the potential bid to be the project management consultant (PMC) for the re-development project has entered into advanced stages and we are excited and thrilled with the prospect of such an opportunity,” commented SMTrack’s deputy executive chairman Azmi Osman.
“We bid for this role due to the project’s strategic location, size, and job scope. Given our expertise and efficient project management experience, we believe this will be a win-win collaboration for both companies.”
The proposed redevelopment project includes re-locating existing residents into a new apartment with a comprehensive compensation package.
Once the re-location has been completed, the demolition of the Flat PKNS will be conducted responsibly without affecting the local communities in the area. This would then be followed by the re-development and construction works.
According to Azmi, the re-development project is a promising prospect for the group given SMTrack’s expertise and track record in project management.
“This is a good opportunity for us to utilise our expertise and healthy financial position through value-accretive efforts such as this to enhance the earnings visibility of the group going forward,” he pointed out.
Aside from the potential return of earnings to SMTrack, the group is also relishing the opportunity to contribute to the community through this re-development project.
“Given the positive impact of this project, which includes the encouragement of new investment, improves local infrastructure and provide multiplier effects that benefit the local communities, the group is excited as it fits into SMTrack’s business philosophy,” noted Azmi.
“I wish to reiterate that while the advanced talks with the relevant parties have been promising, nothing is confirmed at this point in time. A detailed announcement will be made in due course pursuant to the listing requirements of Bursa Malaysia once the company has obtained further information.”
At 11.02am, SMTrack was down 0.5 sen or 2.13% to 23 sen with 42.72 million shares traded, thus valuing the company at RM157 mil. – Feb 28, 2022
