Friday 29 Mar 2024
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KUALA LUMPUR: Ewein Bhd, which will launch its maiden property project "City of Dreams" in Bandar Tanjong Pinang, Penang in the second half of this year, expects the property business to contribute more than 80% to its net profit for the financial year ending December 2016 (FY16). 

Currently, the precision sheet metal fabricator derives most of its profit from manufacturing activity and investment holdings.

Last Friday, its 60%-owned subsidiary, Ewein Zenith Sdn Bhd, received the advertising permit and developer licence (APDL) from the Ministry of Urban Wellbeing, Housing and Local Government for the development of its City of Dreams project, which has a gross development value of RM800 million. The remaining 40% stake in Ewein Zenith is held by Consortium Zenith BUCG Sdn Bhd (CZBUCG).

“With the APDL approval in hand, Ewein Zenith may now commence development work of the City of Dreams project. This is a huge step forward for our company in crystallising our ambition to diversify and transform Ewein into property development,” Ewein managing director Datuk Ewe Swee Kheng said in a statement last Friday.

“The project is expected to provide a gross profit of RM200 million for the joint-venture outfit over a four-year period,” he added.

City of Dreams features two blocks of 38-storey towers housing a total of 572 units, with built-ups ranging from 1,100 sq ft to 2,350 sq ft.

In April this year, Ewe told The Edge Financial Daily in an interview that the seafront serviced apartments will be priced from RM1,200 per sq ft.

Bandar Tanjong Pinang entails 110 acres (44.5ha) of reclaimed land in Tanjung Pinang that was given to CZBUCG by the Penang government as compensation-in-kind for the building of the RM6.3 billion Penang undersea tunnel, which includes three road bypasses.

The seafront development is expected to have a gross development value of RM25 billion over the next 10 years. The master plan of Bandar Tanjong Pinang will comprise residential and commercial properties.

Ewein shares rose seven sen or 9.03% to close at 79 sen last  Friday, with a market capitalisation of RM165.59 million.

 

This article first appeared in The Edge Financial Daily, on July 13, 2015.

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