This article first appeared in The Edge Financial Daily, on June 28, 2016.

GEORGE TOWN: Penang-based Ideal Sun City Holdings plans to invest RM50 million to acquire commercial buildings in the state, as well as in Kuala Lumpur and Selangor.

Its new chief executive officer Datuk Thomas Liang said the project management services provider will acquire the buildings by the first half of the financial year ending Dec 31, 2017 (FY17).

“We are looking at exciting times with project management expansion and possible property development in FY17 or FY18,” he told reporters after the group’s annual general meeting and extraordinary general meeting yesterday.

Liang said the group is looking at acquiring one to two properties for RM25 million in Penang to rent out.

“We are negotiating with a few parties for commercial blocks that will give us high yields,” he said.

In Selangor and Kuala Lumpur, the group plans to spend RM25 million to acquire new factories, and residential and office lots.

“We are talking to three to five parties. We expect a cumulative revenue of RM25 million for three years, beginning next year,” said Liang.

He added that the group is looking at a 20% to 25% year-on-year growth, with about RM30 million in revenue, from its property letting segment for FY16 to FY19.

Ideal Sun City has 58 units of stratified properties in Penang, and 12 light industrial units in the Klang Valley. It is also pursuing a mixed development project in Selangor, which Liang said will be finalised after discussions with the landowner of a three-acre (1.21ha) plot.

“We have not decided whether to develop the land ourselves or enter into a joint venture with the landowner. However, it will definitely be a mixed development project,” he said.

For the first quarter ended March 31, 2016, the group reported a 4.85% fall in net profit to RM842,000 or 0.45 sen per share, from RM885,000 or 0.6 sen per share a year ago.

Revenue rose 8.4% to RM2.5 million from RM2.3 million.

Meanwhile, Ideal Sun City shareholders yesterday approved a change in the group’s name to Mega Sun City Holdings Bhd.

The name change is aimed at better reflecting the intention and determination of additional members of the board of directors to enhance and improve its business under a new leadership.

On Nov 13 last year, Success Tower Sdn Bhd, a private incorporated company based in Klang, purchased 49.05 million shares in Ideal Sun City, bringing its total shareholding in the company to a 31.27% stake, making it the largest shareholder of the group.