KUALA LUMPUR: MK Land Holdings Bhd (MK Land) will focus on raising income from its property and land lease rental as part of the group's master plan that started last year until 2019.
Its Group Executive Officer K Mohanachandran said that based on the masterplan, besides maintaining its core business in property development, MK Land also wanted to increase its income in the hospitality and education sectors.
"The Group has a master plan to change the revenue strategy from real estate sales to the strategy to ensure that the group remains strong.
"MK Land has land banks in strategic and potential areas to be developed. We have 1,942 hectares of landbank with a gross development value (GDV) of RM16 billion.
"We are focusing on three things: whether to develop new real estate, to establish strategic partnerships with other developers for joint development or rental, or to sell some of the land we hold.
"We have already received several backup papers from third parties, but this time has not concluded yet. We are still carrying out a group master plan first before starting the move, "he said after MK Land's AGM in Kuala Lumpur yesterday.
Mohan Landandran said MK Land was also looking at working with the state governments of Melaka and Johor to develop affordable properties in several potential areas.
He said that at the moment, it is still in the process of market research and discussion to identify the location and demand of buyers in the two states.
He said the project was the next step after the success of MK Land in collaboration with Perbadanan Menteri Besar Perak (MB Inc) to develop affordable housing and mixed development in Simpang Pulai, Perak.
"We are looking at new opportunities for non-land acquisition. The development can be carried out on state-owned land.
"It is also in line with the group's objective of giving people the opportunity to own homes as well as helping the state government to provide affordable homes to the people," he said.
Mohanachandran said property development contributed RM157 million or 86 per cent of group income in Financial Year 2018 ending June 30, 2018.
He said the main contribution of the group's revenue from the sales and progress of its property development in Damansara Damai and Damansara Perdana in Kuala Lumpur besides Meru Perdana and Cakung Putra in Perak.
For the year under review, MK Land recorded a total revenue of RM181.8 million and its pre-tax profit increased 16 percent to RM44 million compared to RM38 million a year earlier, mostly supported by the sale of nine acres of land in Perak worth RM67 million.