KUALA LUMPUR (July 10): Precision sheet metal manufacturer cum property developer Ewein Bhd has obtained the advertising permit and developer licence (APDL) for its RM800 million gross development value (GDV) City of Dreams project in Bandar Tanjong Pinang, Penang.
In a filing with Bursa Malaysia, Ewein said its 60%-owned subsidiary Ewein Zenith Sdn Bhd received the APDL today from the Ministry of Urban Wellbeing, Housing and Local Government for the said development.
“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 crystalising our ambition to diversify and transform Ewein into property development,” Ewein managing director Datuk Ewe Swee Kheng said in a statement today.
“The project is expected to provide a gross profit of RM200 million for the joint-venture outfit over a four-year period,” he added.
Ewe further revealed the group is currently in the midst of its preparation to launch the project in the second half of this year, and that the property business shall contribute more than 90% to Ewein’s net profit for the financial year ending Dec 31, 2016 (FY16).
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.
Ewe had told The Edge Financial Daily in April that the sea-fronting serviced apartments will be priced from RM1,200 per sq ft.
Bandar Tanjong Pinang entails 110 acres of reclaimed land in Tanjung Pinang that was given to Consortium Zenith BUCG Sdn Bhd (CZBUCG) by the Penang state government as compensation-in-kind for the building of the RM6.3 billion Penang Undersea Tunnel, which includes three road bypasses.
Ewein said the sea-fronting development is expected to have a GDV of RM25 billion over the next 10 years. The master plan of Bandar Tanjong Pinang will comprise residential and commercial properties development.
Meanwhile, the remaining 40% stake in Ewein Zenith is owned by CZBUCG. The latter is a joint venture formed between Zenith Construction and China Railway Construction Corp Ltd with the largest equity component of 70%, followed by Beijing Urban Construction Group (10%), Sri Tinggi Sdn Bhd (10%) and Juteras Sdn Bhd (10%).
Ewein (fundamental: 0.5; valuation: 1.4) shares rose 6.5 sen or 9% to settle at 78.5 sen today, giving it a market capitalisation of RM164.5 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)