PETALING JAYA: Nexgram Holdings Bhd has a short list of contractor and partners lined up for its maiden property development projects in Cyberjaya and Putrajaya, after its planned partnership with Protasco Bhd fell through.
“We signed the MOU with Protasco but their speed cannot match what we want…if you cannot do the job, sorry. We should follow good governance in selecting the right contractors and partners,” its CEO Tey Por Yee (pix) told reporters after its AGM yesterday. Tey is one of two Protasco directors. Protasco is suing for breach of fiduciary duties.
“We signed with them a couple of months ago and all the partners should come back to us within the period but they couldn’t give us what we want. That’s why we have to select other partners as well. In the future if they can give us something fast and up to the mark, we may consider (them) again,” he added.
Last month, three independent directors of Nexgram resigned after Protasco announced that it had filed a legal suit against Tey, who is a substantial shareholder of Protasco, and Ooi Kock Aun and PT Anglo Slavic Utama (PT ASU).
Tey declined to comment on the resignation of the directors stating that it is a separate matter from Nexgram’s business. He and Ooi are to hold a press conference today.
Last month, the group announced that it had signed two MOUs with MyAngkasa Bina Sdn Bhd for the proposed joint development of the Cyberjaya and Putrajaya projects. MyAngkasa Bina is a subsidiary of Angkatan Koperasi Kebangsaan Malaysia Bhd.
Tey said it expects to have groundbreaking ceremonies for the two projects by first quarter next year and hopes to commence work on the project within the next 12 months.
The estimated value of both projects is RM1.2 billion, which is subject to change depending on the final plans.
“In Putrajaya we are doing affordable housing so it has to be in line with what the government wants. For Cyberjaya, we have more flexibility, we are developing middle to high-end, of course our price will be competitive to the market,” he said.
Tey said moving forward, it is looking for more joint venture (JV) projects in property development, both with the private sector and the government. It plans to focus on projects in the Klang Valley or selected areas in Iskandar Malaysia.
“Hopefully we can launch our projects before end of 2015. That will give us at least three plus two years of consistent income. Looking at thin margin of let’s say 15% net, that is fantastic income for the company for the next five years,” he said.
Tey said the group aims to have property development contribute 30% or more to its total earnings in the next one to two years. In the long term, property development and its core business of telecom, media and technology (TMT) are expected to contribute “quite equally”.