Petaling Tin to launch RM37m residential properties

PETALING JAYA: Property developer Petaling Tin Bhd will be launching the subsequent phases of its housing development projects worth RM37 million in Ulu Kelang and Sungai Buloh by the second half of this year to drive future growth.

The new phases, part of its RM120 million worth of 91-ha projects in both areas, include 15 superlink houses in Taman Kelab Ukay and 126 units of double-storey developments in Sungai Buloh, said chief executive Leong Choong Wah.

“For this year, we are cautiously optimistic but we are more confident of achieving better results next year with our projects rolling out,” he told reporters after the firm’s AGM here yesterday.

Petaling Tin, with no debt and sitting on a net cash of RM17.6 million as at Oct 31, 2007, had already sold 83 units of double-storey developments worth RM20 million in Sungai Buloh in the previous phase, he added.

Leong said the firm hoped to gain more cash by unlocking the value of its projects in Ulu Kelang and Sungai Buloh within a year to prepare itself for the development of a landmark office tower project in Petaling Jaya.

The firm was planning to build a class A office tower in that area, which was still pending the approval from the Selangor state government, he said.

The 0.82-ha site, acquired from its sister company Karambunai Corp Bhd for RM12 million last December, currently has a four-storey building and factory erected on it and is tenanted by Petaling Tin and a third party.

“We hope to build a new six-storey building, or even higher. We plan to lease out more than 40% of the new building and expect more than 8% in rental yield,” he said.

Petaling Tin, 34.26% owned by Karambunai Corp’s chief executive Tan Sri Chen Lip Keong, also owns some 551.2ha of resort land in Karambunai, Sabah, which is situated behind the beachfront land owned by Karambunai Corp.

“We are not in a rush, we will wait for the right time to unlock the value of the huge landbank there,” Leong said, adding that Petaling Tin was considering to develop the land into hillside villa projects and was open to sell some parcels of the land.

For the fiscal year ended Oct 31, 2007 (FY07), the firm returned to the black with a net income of RM16.52 million, or 4.80 sen a share on revenue of RM21.18 million versus a net loss of RM6.60 million on revenue of RM20.12 million in FY06.

By The EDGE Malaysia (by Yantoultra Ngui Yichen)