PETALING JAYA: Furniweb Industrial Product Bhd (Furniweb) said it is now in talks with a few parties to jointly develop more projects within and outside Klang Valley but that it is selective in its choice of partners.

Furniweb (fundamental: 1.05; Valuation:1.2) chairman Datuk Lim Heen Peok said the company has been approached by many companies to establish a joint venture (JV).

“We have many suitors. [But] our approach is careful and selective, not only on location and type of development — we want to do something with quality and do it well,” Lim told reporters after the company’s extraordinary general meeting (EGM) yesterday.

Lim said establishing JVs with other parties, such as landowners, is the company’s “prime strategy” in property development, which is the business model of its maiden residential project, Picasso.

Picasso is developed by Premier De Muara Sdn Bhd, a 60:40 JV between Premier Gesture Sdn Bhd, a wholly-owned unit of Furniweb, and Almaharta Sdn Bhd.

Group executive director Datuk Seri Yeoh Soo Ann, who is mainly in charge of the company’s property development segment, said the company is expecting revenue from the sale of Picasso, with a gross development value of RM560 million, to come in by year-end.

Picasso comprises two 38-storey condominium blocks at Jalan Jelatek and will be launched by March 28. Should the sales do well, the company could enjoy revenue of RM72 million or 60% of the expected RM120 million sales.

Despite a softening property market, Yeoh is optimistic as he believes that the demand for property is still strong. He is also hoping that Furniweb could capitalise on the weaker ringgit as foreigners are looking at purchasing properties in Malaysia.

Apart from the new venture, the company will continue to focus on its core business of manufacturing and marketing furniture webbing, industrial and safety webbing, covered elastic yarn, seat-belt webbing, rubber strips and sheets, and narrow elastic fabrics.

Group managing director Jimmy Cheah said the results of its fourth quarter ended Dec 31, 2014, which would be announced soon, is “better than last year”, but did not elaborate.

Cheah said the company will focus on its existing operations in Vietnam and Malaysia, and that Vietnam has a lot of potential.

Yeoh also said the company is in a good position as its stable income from its core business could buffer the effects of its venture into property, as property has a longer gestation period.

Earlier in the EGM, shareholders agreed to change the name of the company to PRG Holdings Bhd and establish a long-term incentive plan of up to 15% of the issued and paid-up share capital of Furniweb for eligible employees and directors of Furniweb and its subsidiary companies.

This article first appeared in The Edge Financial Daily, on January 27, 2015.