News

PRG Eyes 70 Pct Revenue Contribution From Property Sector

Last update: 19/07/2016

KUALA LUMPUR, July 19 (Bernama) -- PRG Holdings Bhd, a Bursa Main Market listed company, expects its property sector to contribute 70 per cent to the group revenue by 2017 following a number of projects in the pipeline.

The company, which was earlier established as a manufacturing company, entered the property market in 2014. The property sector generated eight per cent revenue contribution in financial year 2014, jumping to 32 per cent last year.

The manufacturing segment contributed 92 per cent to revenue in 2014, declining to 68 per cent in 2015.

The company's maiden project, Picasso Residence at Jalan Ampang, has an estimated gross development value of RM600 million.

Most of the Picasso Residence units have been bought by foreign buyers.

Chief Executive Officer Datuk Steven Hooi Kok Hoe said moving forward, PRG hopes its property segment will overtake the manufacturing segment and it will try its best to sustain this segment.

"We believe that even though the property sector is a soft market now, with the right products we can achieve the target," he told the media here Tuesday.

PRG Holdings today signed a development joint venture agreement with Baycity Park Sdn Bhd and Premier Baycity Sdn Bhd in relation to the proposed development of affordable housing on 2.622 hectares of land in Sungai Buloh.

The development will consist of 650 units of affordable houses priced from RM300,000 to RM350,000.

It will be carried out via Premier Baycity as the joint venture company with the shareholding to be held by Premier Gesture and Baycity Park (51:49 per cent).

Hooi said the joint venture development is in line with the company's strategy to also secure its landbank.

-- BERNAMA