NWP Holdings Bhd will tap into the expertise of GS Realty Sdn Bhd, one of the largest real estate agencies in Malaysia, as part of its diversification plan from timber product manufacturing into the property development.
Recall that early last month, the group has entered into a memorandum of understanding (MOU) with Datuk Seri Nelson Kee Soon Ling, a director and substantial shareholder of NWP and GS Realty, to acquire his stake in the real estate agency.
With this development, Kee is looking to inject property projects with a total gross development value of RM150 mil into NWP, thus paving the way for NWP to transform itself into a property developer.
While the proposed MoU might experience some challenges posed by the recent board tussle at NWP, the recent court hearing concerning the matter might have boosted the proposed plan for the group to venture into property development.
Based on the latest development, the incumbent board continues to be in charge of NWP while the requisitionists, Datuk Seri Mak Hon Leong and Tan Vei Teck are to refrain from holding out as directors.
According to a statement issued by NWP, while the board tussle remains, the group will realign its focus on its diversification strategy to boost its turnaround plans.
This includes the continuation of the MoU deliberation for the company’s venture into the property development business which will be supported by Kee’s vast experience in the property market.
“GS Realty which was incorporated in 2010 has since grown to be one of the largest real estate agencies in Malaysia with myriad branch offices and representatives throughout Malaysia and even partners across the ASEAN region,” justified Kee.
“We’re excited with the prospect of our diversification plans into the property development business … with the vast experience of GS Realty as a major real estate agency in Malaysia, we are confident that our property development venture will take off smoothly.”
Kee further opined that GS Realty’s experience and understanding of the Malaysian property market will enable NWP to meet the rising demand for affordable housing in the country.
“The timing is also at an opportune time as the group’s legacy business in timber products manufacturing continued to struggle following the pandemic,” Kee added.
“The diversification into property development is the management’s plans to turnaround the company after it has successfully entered into the motorcycle business (last year) which is expected to contribute between RM6 mil and RM7 mill to the top line this year.”
At 3.12pm, NWP was down 0.5 sen or 2.7% to 18 sen with 22.45 million shares traded, thus valuing the company at RM95 mil. – June 3, 2021
