Mudajaya's property arm to contribute 10% to revenue by 2015

by **Cals** Fri 13 Dec 2013, 07:01

Mudajaya's property arm to contribute 10% to revenue by 2015
Posted on 13 December 2013 - 05:36am
Eva Yeong
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KUALA LUMPUR (Dec 13, 2013): Builder Mudajaya Group Bhd expects contribution from its property division to rise to 10% of the group's revenue by 2015 from 3% to 4% currently, said its group managing director and CEO Anto Joseph.

"We're doing a bit more diversification. It is part of our strategy to train our construction workers instead of just working for other property developers," he told reporters after its EGM yesterday.

Joseph said it will also enjoy better margins both as a property developer and a contractor, with at least 20% margin combined.

It has three new property projects in the pipeline, with a combined gross development value (GDV) of RM2 billion.

Earlier at the meeting, Mudajaya shareholders approved a joint venture (JV) between MJC Development Sdn Bhd (a subsidiary of Mudajaya Corp Bhd which in turn is a subsidiary of Mudajaya Group) and Mulpha Land Bhd to develop 6.41 acres of land in Petaling Jaya, Selangor.

The project, featuring a mixed development with an estimated GDV of RM700 million, will be launched in the third quarter of 2014 and will take about four years to complete.

Joseph said the group is in discussions for two more potential property projects, one of which is to redevelop its old office on Jalan Semangat in Petaling Jaya into a serviced apartment project.

He said the other project is for a township development in the Klang Valley and it is currently in discussions with a property developer to jointly undertake the project.

The projects are expected to begin contributing to the group's revenue in 2015.

On the power sector, Mudajaya expects contribution from overseas projects to contribute 50% to 60% of total earnings by 2015.

Joseph said it will begin selling power from its power plant in India by the first quarter of 2014, while its renewable energy project in the Philippines will begin in the second half of 2014 and start contributing to the group by 2015.

"With India and the Philippines (projects) coming in, 50% to 60% of our total earnings will be from overseas projects," he added.

In October this year, the group also said it was looking for a partner either from Malaysia or India to form a consortium with its current partner in India to bid for two ultra mega power plant projects with a capacity of 4,000MW each in India.

However, Joseph said it has not secured any suitable partners yet.