Jiankun to expand landbank in anticipation of property demand rebound

PETALING JAYA: Jiankun International Bhd aims to increase its landbank to around 50 acres by the end of 2021 in anticipation of a rebound in property demand.

Meanwhile, its ongoing project, Amani Residences (pix) at Bandar Puteri, Puchong, is 95% completed and the group expects the units to be handed over to buyers by the fourth quarter of 2021. With a sales rate of 95%, it will contribute positively to the group’s financial performance in FY2021.

Jiankun said the escalation of the construction progress of Amani Residences from 65% to 95% over the last six months was mainly driven by the appointment in December 2020 of Edwin Silvester Das as executive director and CEO.

“This was despite the strict standard operating procedure that the group adopted amidst the resurgence of Covid-19 cases and the reintroduction of a more stringent movement control order in the country,” it said in a statement.

Edwin said the group is set to benefit from the impact of the national vaccination programme coupled with the government’s measures, such as the Home Ownership Campaign, and the current low interest rates.

“We strongly believe demand will be stimulated again as the pandemic delivered severe impact on the property sector, and this puts us in a good position to leverage and negotiate to acquire lands at attractive prices,” he said.

In December 2020, the group proposed to acquire a piece of leasehold land in Melaka Tengah District, Malacca, to build serviced apartments and a 28-storey hotel. This marked the group’s strategy to expand its property development outside the Klang Valley.

Additionally, the group announced its plan to diversify into the land reclamation business in the first quarter of 2021, following the acquisition of Embon Global Venture Sdn Bhd. This acquisition provides Jiankun with immediate access to reclamation concession rights to an area spanning 30 acres in Malacca.

“In order to create a recurring income stream to the group, we have also acquired Limpah Restu Development Sdn Bhd for RM10 million in March 2021. This acquisition comes with the alienation of 16 acres of leasehold land in Perak, for the business of private cemetery, crematorium and columbarium,” it said.