High-end projects set to put Mulpha on profit track

MULPHA Land Bhd (MLB) (7889) is launching four high-end projects worth RM1.03 billion in Kuala Lumpur and Johor this year, in a bid to turn around.

MLB slipped into the red in the 12 months to December 2007, incurring a net loss of RM417,000 against a net profit of RM864,000 in 2006.

For the first nine months in 2008, MLB, the property arm of Mulpha International Bhd, posted a net loss of RM94,000.

Chief executive officer Lai Meng told Business Times in an interview that the way forward for MLB is to offer niche and sought-after products.
It is launching Bangsar Enclave in the next quarter, which features seven units of 3-storey villas in a gated and guarded community, worth RM70 million.

In the second half of the year, MLB will launch Menara Mulpha at Jalan Sultan Ismail, and a yet-to-be-named luxury development in Kenny Hills, offering eight unique villas with private pool, worth RM110 million, or RM15 million each.

Menara Mulpha is a 23-storey Grade A office building, worth around RM350 million. The property, which is the first iconic building with green features for the Mulpha Group, will be leased for recurring income, Lai said.

"These projects have strong unique product concept in superb locations and should provide impetus for growth. Nevertheless, we are mindful of the gloomy economic outlook and will adopt a cautious approach in our planning and execution," he said.

Also in the pipeline is Precinct 7 at MLB's RM1.2 billion Leisure Farm Resort project in Gelang Patah, located in Iskandar Malaysia, Johor.

It will offer 320 units of semi-detached homes and bungalows, surrounded by garden parks and canal waterways, worth a combined RM500 million.

"Precinct 7 will be developed in phases to enhance price positioning," added Lai.

MLB is also banking on its recently refurbished and restored project, opposite the Raintree Club in Ampang Hilir, to improve earnings.

Dubbed Raintree Residence, it has four semi-furnished 5-bedroom duplex penthouses, and eight units of 4-bedroom apartments, which will be leased.

"It will be our first rental product in Kuala Lumpur and should be favourable in this locality filled with expatriates and consulate staff," Lai said.

MLB's current projects are Bukit Punchor in Nibong Tebal, and Desa Aman in Padang Meha, Kulim, Kedah, worth RM706 million.

By Business Times (by Sharen Kaur)