Gaming, property units to drive MPHB revenue

Multi-Purpose Holdings Bhd (MPHB) expects revenue to hit the RM5 billion mark in the next five years, driven by its gaming and property development business, says its chief.

In fiscal year March 31 2010, MPHB recorded net profit of RM327 million on revenue of RM3.3 billion.

Some 80 per cent of the revenue came from the gaming business via its 51 per cent stake in Magnum Holdings Sdn Bhd. The rest were from property, insurance, stockbroking and investment holding.

Managing director Datuk Lau Kim Khoon @ Surin Upatkoon said its property division has five projects worth over RM10 billion on the table to roll out by next year.

The biggest is the redevelopment project in Makati City in the Philippines. It plans to convert a 22ha horseracing track into an integrated development, featuring commercial, residential and retail space as well as a hotel.

MPHB has a 40 per cent stake in listed Philippine Racing Club Inc that owns the race track, which has been relocated to Manila.

Lau said in an interview with Business Times recently that the project is estimated to worth over RM5 billion.

"We hope to start construction next year. We are bullish on the development and sales as it is located next to the Makati financial district," he said.

At present, MPHB has three projects worth some RM300 million; two residential developments in Penang and one in Pudu, Kuala Lumpur.

By the middle of next year, it targets to launch a RM3 billion project on a 2.4ha site in Kuala Lumpur.

The seven-year project will comprise a one million sq ft retail podium, 50-storey luxury condominiums, a 35-storey four-star hotel and a 30-storey office tower. MPHB will add one more office tower and a residence complex at a later stage.

"We will retain the hotel, retail podium and one commercial block. Property investment will be a growing business for us," Lau said.

The project will be linked to Berjaya Times Square, Sg Wang Plaza, the new international financial district and Pasar Rakyat redevelopment in Imbi.

MPHB has three joint ventures with Bandaraya Development Bhd to undertake medium- to high-end residential projects worth RM1 billion on land its owns in Rawang and Mimaland in Selangor and in Penang.

The companies are discussing details of the joint-venture agreements, Lau said.

By Business Times