Perak-based developer RH Consortium Sdn Bhd aims to go public in the next three to five years to enable it to acquire more land and expand its development in the state.
Although the company is keen on a Bursa Malaysia listing, realistically it would only be in the next three to five years as the focus now is to build up its revenue and net profit, executive chairman Ramelle A shram Ramli told the New Straits Times recently.
RH Consortium is targeting RM30 million revenue this year as it is just starting off its flagship mixed development, Riverbank Cove, in Manjung.
The 52ha project has a total gross development value (GDV) of RM2 billion and it will take about seven years to complete.
The development will include residential and commercial properties, a confinement centre, a boutique hotel, and student accommodation.
“We need the GDV to be realised and we are expecting higher sales from 2021 onwards. Our revenue target in 2021 is to achieve close to RM100 million,” said Ramelle.
He added that the company would be profitable this year.
There are six phases of development in R iverbank Cove, which is situated right at the river mouth of Sungai Tiong overseeing Pangkor Island.
The first phase will take up 14ha and has a GDV of RM150 million. It will offer 550 residential units to be developed in four sub-phases, said Ramelle.
Phase 1A, launched in October last year, has 100 units of doublestory terrace houses. The houses are selling from RM290,000 to RM480,000 (corner units) and close to 60 per cent had been sold, he added.
Ramelle said Phase 1B and 1C would be launched by the third quarter of this year, featuring 350 units of townhouses priced from RM190,000 to RM220,000 each.
“We are anchoring Riverbank Cove to launch the entrance of RH Consortium into the property development market.”
RH Consortium has raised RM200 million from a sukuk issue with Kenanga Investment Bank Bhd to fund the development.
According to Ramelle, the company had drawn down RM33 million from the sukuk proceeds to develop the first few phases.
“The project will be self-funding as we move along,” he said.
Group chief executive officer Hamzarul Hazmir Hamdan said RH Consortium is planning to launch new developments in Taiping and Meru.
The company has obtained the development order from the authorities for the project in Meru, which is expected to have a GDV of RM680 million.
The land in Taiping, which is about 21ha, is in the planning stage, he said.