Friday 29 Mar 2024
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DATUK Low Tuck Kwong and Chin Wai Fong, founders of coal mining company PT Bayan Resources Tbk, have joined hands to venture into property development in Malaysia.

Low, an Indonesian national, is the principal founder and president commissioner of the Indonesia-listed Bayan Resources, which had a market capitalisation of

US$1.86 billion as at Jan 22 and reported a revenue of US$1.15 billion for the year ended Dec 31, 2013. Known as the country’s coal king, he was listed by Forbes as the archipelago’s 30th richest man as at Dec 31, 2014, with a net worth of US$1.1 billion. As at March 31 last year, he directly held a 51.59% stake in Bayan Resources.

Chin held 1.6% equity interest in the company on the same date. The Malaysian is the president director and CEO of Bayan Resources. He is better known locally for the cultivation of the Musang King variety of durians.

Low and Chin have at least two property companies — Desaria Property Sdn Bhd and Desaria Home Sdn Bhd — here, which will undertake two projects in the Klang Valley. According to sources, the combined gross development value (GDV) of the projects is RM1.8 billion.

A search with the Companies Commission of Malaysia (SSM) shows that Desaria Property, incorporated in 2005, has a paid-up capital of RM1.5 million. The company’s shareholders are Chin with a 63% stake, Singapore-based Kaiyi Investment Pte Ltd (30%) and Loke Lee Luan (7%). Chin and Loke have the same address.

The same shareholders of Desaria Property hold similar stakes in Desaria Home.

A search on the Internet reveals that Kaiyi Investment is controlled by Low and his family.

Low and Chin’s maiden project, being undertaken by Desaria Property, is located in Persiaran Stonor — a stone’s throw from the Petronas Twin Towers. To be called Manor, Kuala Lumpur, it has an estimated GDV of RM800 million and will be a 46-storey tower with 212 condos, including penthouses and a sky lounge.

The Edge understands that an earlier proposal to have a helipad was scrapped due to security concerns raised by the approving authority, Dewan Bandaraya Kuala Lumpur.

What is interesting is that the developer only plans to offer large units. “It is a luxury hotel-style project. The company is planning units that are a minimum of 2,400 sq ft each,” a source with knowledge of the project says.

Expected to be launched in April this year, Manor is believed to be targeted at rich Indonesians.

A search on recent land transactions in Persiaran Stonor and its surrounding area reveals that Desaria Property had purchased a freehold tract from Unique Tiara Development Sdn Bhd for RM50 million in July 2011. Then, in December 2011, it purchased an adjacent tract from Title Winner Sdn Bhd for RM46.75 million.

Together, the freehold tracts measure 64,203 sq ft. Manor will be in the vicinity of several planned serviced apartment/hotel projects (see table).

Another project of Low and Chin will be on an 8.5-acre parcel in Sungai Long. This development, said to have a GDV of at least RM1 billion, is expected to be launched in the next couple of years.

It is learnt that Low and Chin are keen to increase their landbank in Malaysia, but are very selective about it.

Based on the latest financials available in SSM, Desaria Property did not report a revenue but registered a net loss of RM574,688 in the financial year ended Sept 30, 2013. It had total liabilities of RM115.89 million, RM52.67 million of which were current.

Desaria Home posted a net loss of RM1.84 million on revenue of RM147.98 million in FY2013 ended Sept 30. It has RM70.46 million in current liabilities and RM32.14 million in non-current liabilities.

Meanwhile, Chin is said to have undertaken a property development project, known as Desaria Villa in Puchong, on his own as early as 2006.

It was only after this property venture that he decided to acquire land for a durian plantation and established Desaria Food Sdn Bhd in 2011. According to Desaria Food’s website, it specialises in the production of frozen durian and owns 300 acres of durian orchards, which are predominantly planted with the Musang King variety.

The website further states that “Chin bought the durian orchards to please his mother, who is an avid durian lover”. Musang King durians are considered to have the highest grade among the varieties of the king of fruits.

The durian business takes up 43,040 sq m of Desaria Food’s factory and store. Its main products are Frozen Durian and Durian White Coffee. The company has plans to conduct more R&D in processed durian products. Apart from Malaysia, it has customers in Indonesia, Singapore, Hong Kong, Taiwan and China.


This article first appeared in The Edge Malaysia Weekly, on January 26 - February 01 , 2015.

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