KSL takes bigger steps out of Johor

JOHOR-based property developer KSL Holdings Bhd (5038) plans to build a 10-storey, 50-unit luxury condominium on recently acquired land in Jalan Madge, Kuala Lumpur.

It is yet to receive approval for the RM110 million development.

KSL said on Monday that it had bought a 3,384.073 sq m site for RM25.4 million. No details on its plans for the land were given.

"We have spoken to the authorities and they mentioned that we can build up to 10 storeys high, with 50 units," KSL executive director Ku Tien Sek told fund managers and analysts during the TA Securities Investor Conference yesterday in Kuala Lumpur.

He expressed confidence that KSL could manage a 30 per cent margin from the condominium development.

KSL registered a net profit of RM91.39 million in the financial year ended December 31 2009, up from RM90.5 million the year before.

A property developer set up in 1979, KSL's main focus has been Johor.

In 2007, it made the first attempt to venture out of Johor with the purchase of 178.4ha in Klang for RM160 million.

Development of that land, however, was delayed by a civil suit KSL brought against the landowner, who wanted to get out of the agreement to sell.

The mixed residential and commercial project has a gross development value (GDV) of RM2.5 billion. It is scheduled for launch in September.

"We should be able to easily make a profit margin of 40 per cent in Klang as, all this while, we have managed 40 per cent in Johor.

"It's not right to not have 40 per cent profit margin in Klang Valley when the price is higher here," Ku said.

KSL is also scouting for more land in the Klang Valley area, but Ku declined to elaborate.

Apart from the recent acquisition, KSL also has 907.2ha in Johor and Selangor.

About half of it is land in Iskandar Malaysia, nearly a third in other parts of Johor and the rest in Klang.

KSL has four major projects in Iskandar Malaysia: KSL City, Taman Nusa Bestari, Taman Bestari Indah and Taman Kempas Indah.

KSL City comprises two towers of luxury condominium units, two towers of a three-star hotel and a retail shopping complex. The project's GDV is RM600 million.

The GDV of Taman Nusa Bestari is RM380 million; Taman Bestari, RM780 million; and Taman Kempas Indah, RM468 million.

KSL, a listed company, is 50.35 per cent owned by the Ku family, 8.83 per cent by Lembaga Tabung Haji and 5.02 per cent by Templeton Emerging Markets Fund.


By Presenna Nambiar