Nexgram targets to reap 15% profit margin from property projects

Nexgram targets to reap 15% profit margin from property projects

KUALA LUMPUR (Oct 27): Nexgram Holdings Bhd ( Financial Dashboard), an end-to-end mobile application service provider that has ventured into property development, is targeting 15% profit margin from its property division, said its Chief Executive Officer and Managing Director Tey Por Yee.

Currently, Nexgram has formed a joint venture with Angkasa Bina to undertake two housing projects in Putrajaya and Cyberjaya.

Angkasa Bina is a subsidiary of Angkatan Koperasi Kebangsaan Malaysia Bhd and its principal activities are in property development and construction, especially in cooperatives markets.

The combined gross development value (GDV) of the two development is estimated at RM1.2 billion.

However, Tey pointed out there were still details such as plot ratio, to be finalised.

"As the proposal is still at a preliminary stage, we have yet [to] set the exact date for the comencement date and the launches date," he told the media, after the company’s AGM. But he hopes the ground-breaking ceremony of the projects could take place by first quarter 2015, and construction works would commence within 12 months after the ceremony.

Tey said both projects sit on a land, measuring about six acres respectively.

He said the project in Cyberjaya will be focused on constructing affordable houses, while the one in Putrajaya will be on constructing medium to high-end properties.

Going forward, Tey said the company is looking for more joint venture opportunities in Klang Valley and Iskandar region in Johor, after launching its maiden project.

"We will also extend our land bank, should there be an opportunity," he said.

Commenting on the status of the joint venture with Protasco Bhd ( Financial Dashboard), Tey said the memorandum of understanding (MoU) has lapsed.

The lapse of the MoU, he said, was due to Protasco not having replied to Nexgram within the time frame given.

"Hence, we are looking for suitable candidates to replace Protasco," he said, adding that Nexgram had shortlisted several companies. However, he declined revealing the names.

Speaking on their core business performance, he expects its telecommunication, media and technology division to continue to expand.

"We have ventured into data base station and data cabling business recently; it would help the company to expand," he said.

Tey also revealed that Nexgram has been tendering two sizeable TMT projects here, but refused to disclose further details.

He also said the company will be focused on strenghthening its footprints locally, before expand its business overseas.

"Our focus presently, [is] still [on] the local market, despite there are huge demand for TMT in the Middle Eastern Countries," he added.