This article first appeared in The Edge Financial Daily, on May 25, 2016.

KUALA LUMPUR: Construction company TRC Synergy Bhd expects contribution from its property segment to rise to between 20% and 30% of its group revenue in two years, from about 10% now, which is contributed by its development arm TRC Land Sdn Bhd.

The bulk or 90% of its revenue is sourced from its construction segment now.

Its executive director Datuk Abdul Aziz Mohamad said the company is finalising its Ara Damansara mixed development that comprises service apartments, a hotel, an office block and a retail mall. The project is located at the Ara Damansara light rapid transit (LRT) station, and is a joint development with Prasarana Malaysia Bhd.

“We are finalising the Ara Damansara development by this year and [should] launch the project in the first quarter of next year. The expected GDV (gross development value) of the development is about RM1 billion,” said Abdul Aziz.

Meanwhile, TRC Synergy chairman General (Rtd) Tan Sri Mohd Shahrom Nordin said the company delivered a reasonable and consistent performance last year, despite the challenging economic environment.

“Moving forward, we will beef up our property division and we hope our Ara Damansara development will drive our property division,” he said.

On the group’s projects in Sarawak, Abdul Aziz said the company had been shortlisted for the Pan Borneo Highway project, for packages valued at between RM1.4 billion and RM1.5 billion.

“With a vast experience of about 16 years in Sarawak, TRC will stand a chance to win more projects in Sarawak,” said TRC Synergy managing director Tan Sri Sufri Mohd Zin.

As at April 20, 2016, its ongoing construction projects were valued at RM2.86 billion, while its unbilled amount stood at RM1.08 billion.

To date, TRC Synergy has completed projects in excess of RM4 billion. Its revenue for the period ended Dec 31, 2015 slipped 5.8% to RM767.9 million, while its net profit rose about 8.7 times to RM30.8 million, mainly due to foreign-exchange gain.

“For 2016, almost all major projects by TRC will be completed by [the] second quarter of the year. Projects involved are [the] MRT (mass rapid transit) Sungai Buloh depot, MRT 1 stations in Sungai Buloh and Kelana Jaya LRT,” Abdul Aziz added.

TRC Synergy aims to sustain its top and bottom lines in FY16, according to Abdul Aziz.

“At Trans Recourses Corp Sdn Bhd’s level, we are pleased to note that our revenue has surpassed last year’s target of RM700 million. All projects are successfully completed within the contracts’ time frame. Going forward, we are bullish to secure more projects from our major clients, such as Prasarana and MRT Corp for the next LRT Line 3 and MRT Line 2,” Sufri said.