CONTRACEPTIVE, BABY PRODUCT MAKER LOOKS TO PROPERTY FOR ENHANCED FUTURE EARNINGS
BY Chris Prasad
More and more corporations are starting to branch out into property development, which is a curious thing considering the industry is in the midst of a prolonged slump.
However, your curiosity truly gets piqued when O&C Resources Bhd (OCR), a condom and baby product manufacturer, starts moving into the property industry in a big way.
Via its 90%-owned subsidiary, O&C Properties (Kuantan) Sdn Bhd, OCR is poised to team up with the Pahang State Foundation to undertake a mixed development project in Penor, Pahang. The proposed project is said to represent an estimated gross development value of RM166 million.
In its announcement to Bursa Malaysia, the company revealed that the project to be a 50:50 joint-venture with the state foundation. It will comprise commercial components as well as an affordable housing scheme dubbed the “Priya Scheme”.
This will take shape on 100 acres of the foundation’s 814-acre leasehold land in the Penor area. Other than abovementioned components, the development will feature 979 terrace houses, 130 semi-detached houses and 41 shop lot offices.
The also company revealed, in its Bursa statement that it is looking to bank on property development as its future engine of growth.
On the affordable housing scheme, OCR said that there will be about 25,000 affordable residential units available.
The OCR group is confident it will hit an estimated profit of RM91mil from the job over a seven-year construction period.
The first phase of development under the project would be situated at Penor, near the Kuantan-Pekan district and less than 20km from the Kuantan town.
According to various news reports, OCR was in the red for five financial years up to July 31, 2016. It has fared much better this year, as it reported unaudited earnings of RM2.35mil.