Fiamma Holdings Bhd to develop 3 property projects

Fiamma Holdings Bhd to develop 3 property projects

KUALA LUMPUR, Feb 23 — Electrical home appliances distributor Fiamma Holdings Bhd plans to launch three new property projects this year in the Klang Valley and Johor, with a total gross development value (GDV) of close to RM500 million.

Chief Executive Director and Group Managing Director Lim Choo Hong said in the pipeline are two high-rise property projects, dubbed the ‘East Parc@Menjalara in Bandar Menjalara and ‘Vida Heights’ in Johor Baharu, with a total GDV of about RM300 million and RM120 million, respectively.

The 1.21 hectare East Parc@Menjalara will consist of 432 units while Vida Heights will comprise 247 units of serviced apartments.

“We also have a small-scale landed property project comprising shophouses and link houses, among others, in Kota Tinggi, with a GDV of about RM60 million,” he told reporters after the group’s annual general meeting and extraordinary general meeting here Tuesday.

With these launches, the property segment’s revenue contribution is expected to increase to more than 10% in the next two or three financial years, he added.

Asked on the impact of the slower property industry in the Iskandar region on its business, he said as the current conditions might take a longer period to recover, the company is focused on the first phase of the project with the second phase kept in view.

At present, Fiamma’s trading and services segment are the group’s largest revenue contributor at 90.7 per cent, followed by the property segment (8.7%).

In October 2015, the group invested RM60 million on its new 175,000 sq ft (16,258 sq m) warehouse in Bukit Raja Industrial Hub, Klang.

“We have relocated our operations there (the new warehouse) as the first phase of the warehouse has been completed while the second phase will be completed by next month.

“We will move in some of our brands there by May and then we have phase three, to be completed by early next year, to cater to third-party customers,” he said.

The warehouse will house the group’s logistics operations, expand the storage area as well as provide an additional income stream for the provision of storage space and logistics services to third-party customers.

Lim added that Fiamma is also looking at adding new offerings under the same network.

Fiamma is largely involved in the distribution of home appliances, sanitary wares, and healthcare products.

At today’s EGM, the shareholders agreed to a proposed share split and bonus issue to enhance the company’s share trading liquidity and improve its capital base to better reflect its scale of operations.

For the full-year results ended Sept 30, 2015, the company’s pre-tax profit rose to RM75.42 million from RM63.18 million, while revenue dropped to RM333.49 million from RM338.16 million.

— BERNAMA

Share