KUALA LUMPUR: WCT Holdings Bhd is upbeat on its prospects for the financial years 2016 and 2017, driven by its outstanding order book of RM4.3 billion and planned real estate investment trust (REIT) listing.
Its executive director Kenny Wong Yik Kae said besides the healthy order book which is expected to keep the company busy for the next three years, WCT is also bidding for RM5 billion worth of projects consisting of a “good mix” of infrastructure, civil works, building and highway jobs.
“While we are still busy tendering for construction projects, we will also continue to improve our shopping malls for REIT listing as we have been involved in the shopping mall management for almost five years and every year it’s about improvement.
“We remain upbeat on business,” he told Business Times in an interview, here, recently.
Wong said the company is still keeping close tabs on the progress of the Tun Razak Exchange and Petroliam Nasional Bhd’s Refinery and Petrochemical Integrated Development Project after it bagged contracts worth RM1.6 billion from the two jobs last year.
“We believe there are still opportunities and will continue to tender when the time comes,” he said.
Wong said out of the RM4.3 billion order book, 79 per cent of jobs are related to civil and infrastructure projects, of which 90 per cent are local projects.
The company is also actively looking for contracts in Qatar, UAE, as it sees huge opportunities in terms of infrastructure projects in the country as it is hosting the 2022 FIFA World Cup.
WCT is also involved in Lusail Development Project in Doha, Qatar, — a 38 sq km urban development that will feature residential developments, entertainment and commercial districts, including a world-class stadium which is slated to host the 2022 FIFA World Cup.
Wong said the company plans to first list its two malls — Aeon Bukit Tinggi and Paradigm Mall Petaling Jaya — with a valuation of RM1.2 billion as at end of financial year 2015.
“We have five shopping malls but it is still too early to pump everything into the REIT.
“We have to wait for the first cycle of tenancy renewal, and then we will manage the cost, before considering parking them into the REIT,” he said.
Besides Aeon Bukit Tinggi and Paradigm Mall Petaling Jaya, the company owns Gateway@KLIA2, Paradigm Mall Johor Baru and Paradigm Mall Kuala Lumpur, with five million sq ft of net lettable area.
According to news reports, WCT is expected to list its REIT in the second quarter of its financial year 2017.