Encorp to expand landbank

PROPERTY developer Encorp Bhd, which currently has a total landbank of 107.36ha, is looking for more land in Malaysia and in the region.

Executive chairman Datuk Seri Mohd Effendi Norwawi said the company is currently in advance negotiation to buy several pieces of land in Peninsular Malaysia while scouting for opportunities in Australia and the Asean region.

"Our business development team is very busy reviewing various locations with potential for development in both local and overseas to expand our current land banks," he said.

Encorp's property projects have a combined gross development value of RM3.4 billion.

Effendi said with Encorp's achievements to date, the group is expected to generate a profit of about RM680 million over a period of five years.

"However, we are in the process of looking at other prospective ventures that will enhance revenue, profit and sustainability in the coming years," he said.

For this year, Encorp will be developing the integrated resort and international golf course in Cherating, the launch of Encorp Marina at Puteri Harbour in Johor and Encorp Ferringhi in Penang.

"More future projects are in the pipeline in both Klang Valley and our resort home development in Cherating," he said in a recent e-mail interview.

On the recent acquisition of land in Perth, Australia, Effendi said it will keep the group busy for the next five to eight years.

Encorp recently bought a 11,000 sq m property in Perth for about RM18.54 million to be developed into a mixed residential and commercial project.

The project will have a gross development value of A$13 million (RM42.77 million) with construction expected to begin in the second quarter of 2014 and completed by 2017.

"Our maiden project in Perth has enjoyed good take-up rate and with this, we are looking for more opportunities in Australia. We are also exploring opportunities in other Asean countries," said Effendi.

Its maiden project in Perth is named the Residences on McCallum Lane and was launched to investors in October last year.

It is located in a prime location, close to Perth's central business district and is a 10-minute drive away from Curtin University, and 10 to 15 minutes away from University of Western Australia.

Back home, Encorp's major land- bank include the 18.24ha for its Encorp Strand project, 84ha of its Cahaya Alam project, 1.32ha in Johor for the Puteri Harbour project and 2.32ha of land in Batu Feringghi, Penang.

By Business Times