Asian Pac moving 'very cautiously'

KUALA LUMPUR: Property developer Asian Pac Holdings Bhd, which expects the rest of its financial year ending March 31, 2016 to be challenging, will launch three property development projects – in Damansara Damai, Kepong and Johor Baru – next year.
Its managing director Datuk Mustapha Buang told reporters after its AGM here yesterday that he expects business conditions to be challenging, given the soft property market.

"We are not as bullish as before. We are moving very cautiously. Hopefully, with the right product and pricing, we should be able to ride the tide and maintain our financial performance this year," he added.
Going forward, Mustapha said, the company is looking at 70% contribution from its property development division to net profit and the remaining 30% from recurring income, noting that the company's recurring income comes from Imago Mall in Kota Kinabalu, Sabah, and car park operations.
For the first quarter ended June 30, 2015, Asian Pac recorded a net loss of RM6.93 million, against a net profit of RM3.97 million in the previous corresponding quarter, mainly due to decreased revenue from its property development division.
Revenue decreased 66% to RM21.07 million, from RM61.78 million, due to lower revenue recognised from its property development projects including KK Times Square, Dataran Larkin and Fortune Perdana @ Lakeside in Kepong, as well as higher operation and finance costs.

Mustapha said the company expects to launch its condominium project named Damansara 8 in Damansara Damai and its mixed-development project called B3 in Kepong by the first quarter of 2016.

The projects are expected to have a gross development value (GDV) of RM330 million and RM350 million, respectively.

Mustapha said the project in Johor Baru is the second phase of Dataran Larkin. Phase two carries a GDV of RM53 million, compared with RM110 million for phase one.
Phase two of Dataran Larkin, which consists of 30 units of three-storey premium boutique and showroom commercial suites, is expected to be completed by the third quarter next year.
Mustapa said the group's unbilled property sales of RM350 million will keep its property division busy for the next two years.
Meanwhile, Asian Pac is finalising plans for its maiden township development on 400 acres in Labu, Negri Sembilan, which is expected to be launched in 2017.