24 June 2014

Fututech goes into property with launch of RM300mil project in Genting Highlands

  24 June 2014


PETALING JAYA: Fututech Bhd, which provides products and services for the construction and property sectors, is venturing into property development with its maiden project in Gohtong Jaya, Genting Highlands.

Executive chairman Tee Eng Ho said that the mixed development project, Vista Residences@Genting Highlands, had a gross development value of RM300mil and was targeted to be launched by the fourth quarter of this year.

The integrated service apartment building comprising 378 residential units and 28 retail lots will sit on 0.57ha and is expected to be priced from RM700 per sq ft.

With its expertise in kitchen cabinetry, custom lighting and construction, Tee said Fututech’s unique selling point for its projects would be the high quality furnishing standards for its medium-to-high-end types of high-rise properties.

“We are continuously on the look out for more suitable land to buy in Penang Island, around Gohtong Jaya and the Klang Valley,” he said after the company’s AGM yesterday.

Chief executive officer Evan Loo said it was also looking into land acquisitions via joint-venture, adding that it was in the process of talking to some landowners in the Klang Valley.

“We don’t have any borrowing and our cash position is strong. Any corporate exercise we undertake will be on an as-need basis,” he said.

Fututech’s second property project is another high-rise residential development at Monterez Golf and Country Club, Shah Alam, with a gross development value of RM200mil and expected to be launched by early next year.

“We expect to see these new projects contributing to our earnings from 2015 onwards. Eventually, we aim for property development to be our top segment as it is more lucrative with higher margins,” said Tee, adding that its other two segments, manufacturing and construction, would complement it.

He expected to see property demand increase before the implementation of the goods and services tax (GST) next April, adding that the company’s projects were well-positioned to meet this demand.

He added that although the GST should add around 2% to 3% to its costs, Fututech should have no problem absorbing them as it was in a healthy financial position.

Fututech recorded RM2.95mil net profit on the back of RM11.46mil revenue for its first quarter ended March 31, 2014, while its order book currently stands at around RM130mil.

~ By THE STAR

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