Jiankun to launch Seri Kembangan project

KUALA LUMPUR: Jiankun International Bhd, whose shareholders approved its RM22.5 million land acquisition, aims to launch a residential project with a gross development value of RM71 million in Seri Kembangan in the fourth quarter this year.
Executive chairman Datuk Donald Lim Siang Chai said the project comprises 84 units of terrace houses priced between RM700,000 and RM800,000 each.
It will take 18 months to develop the houses on 93 plots of freehold land in Ulu Langat, measuring a combined 101,517 sq ft.
"We have paid 30% (for the land) and the balance will be financed by the banks. We have secured a bank loan to pay the balance already and they also gave us some bridging loan for the construction so we don't have any problems," Lim told reporters at its EGM yesterday, after obtaining approval from shareholders for the land acquisition.
Lim said it is on track to return to the black this year and hopes to achieve "reasonable" profits next year.
"Next year we believe we are able to make a more reasonable profit and we hope by then we can give some dividend to the shareholders," he said.
Earlier in May, Lim said it aims to pay out dividends at a minimum rate of 4%.
On its project management services agreement with Juara Gred Development Sdn Bhd, he said the company is building 28 units of industrial semi-d's and construction is on schedule, with 12% completion. The RM32 million project began in March this year.
The company is also in the midst of planning a condominium project in the Klang Valley on a joint venture (JV) basis.
"We are starting out soon. We hope we are able to finalise the plans latest by middle of August. We are looking at the figure of RM500,000 to RM600,000 (selling price); below RM600,000," he said.
Earlier in May, its shareholders approved its diversification into construction. However, Lim said it is still more focused on property development, particularly in the affordable homes segment.
"We are looking at some PR1MA (1Malaysia People's Housing Programme) projects as well, building affordable homes for the people," he said, adding that construction is still a small portion of its business.
Lim said it is looking to dispose off its asset in China and is in talks with potential buyers.
According to its 2014 annual report, Jiankun owns 14 shops in two buildings in Guangdong Province, China, with a total gross floor area of 1,467.39 sq m.
The net book value of the asset is RM22.21 million. The properties are currently vacant.
"We have some property there. We intend to dispose of it and bring the money back to Malaysia to use it to purchase land or for JVs ... In the mean time, we still proceed to look for land to purchase and also JVs," he said.
Its share price closed 3.77% higher at 27.5 sen yesterday, with a total of 31,000 shares traded.