KUALA LUMPUR: Builder and property developer Ekovest Bhd, which is controlled by tycoon Tan Sri Lim Kang Hoo and Datuk Haris Onn Hussein, the brother of Defence Minister Datuk Seri Hishammuddin Hussein, expects its financial year ending June 30, 2015 (FY15), to see a significant jump in revenue with the contribution of the Duta–Ulu Klang Expressway (Duke) and its property development project EkoCheras.

Ekovest managing director Datuk Lim Keng Cheng, nephew of Kang Hoo, said the group’s current order book is at RM2.1 billion. 

“Last year, we didn’t have contribution from property development. Definitely, there will be a surplus [this financial year],” he told reporters after the group’s annual general meeting yesterday.

He also expects Duke to contribute approximately RM100 million per year to its turnover. Ekovest completed its acquisition of the remaining 30% stake in Duke from Malaysian Resources Corp Bhd in January this year.

Keng Cheng said about one quarter of the construction works on the RM1.18 billion Duke extension (Duke 2) has been completed.

“We have completed 25% of the 16km Duke 2 development and we expect to complete the project by December 2016,” he said.

He added that Ekovest will remain a construction company even though its property development project has started to contribute to its earnings.

“We are tendering for more than RM3 billion worth of jobs, while our projects in hand are at RM2.1 billion.”

Currently, revenue contribution from the construction division remains the highest, at 40%, while the property development and infrastructure divisions contribute about 30% each. 

On its property development division, Keng Cheng said the take-up for the group’s RM1.61 billion EkoCheras mixed development has been encouraging, registering an 87% take-up rate.

“We have also obtained the approval from [Kuala Lumpur] City Hall to convert the commercial portion of our EkoCheras project into a shopping centre. There are also plans to build a four-star hotel within the development,” said Keng Cheng, adding that the project is expected to be completed by the fourth quarter of 2017.

While he believes there is no property bubble in the Iskandar Malaysia region, Keng Cheng said Ekovest is not launching its property development projects at Danga Bay yet, as it is taking a “wait-and-see” approach now.

“We are not in a rush to launch. Our land bank at Danga Bay is only 25 acres (10ha). We should wait until the area is developed to enjoy a higher price,” he said.

This article first appeared in The Edge Financial Daily, on December 30, 2014.