MKH confident of maintaining 80% take-up rate for new launches in FY2017

KAJANG (Dec 6): MKH Bhd is confident it will maintain an 80% average take-up rate for its property launches in financial year ending Sept 30, 2017 (FY2017). It plans to launch some RM1.6 billion worth of properties in FY2017.

Most MKH property projects are often 30% to 50% sold after six months of their launches and almost fully taken up towards the completion of the projects, said the company’s chief financial officer Kok Siew Yin at a press conference today.

The average take-up rate for all its ongoing projects is about 80% and the company remained confident of achieving a similar performance in FY2017 due to the strategic locations and affordable selling prices of the upcoming launches, she said.

"At the initial stage, the take-up would usually be about 50% but towards the end, we will achieve 80%," she added.

Among the new launches are integrated high-rise developments in Kuala Lumpur known as TR Residence at Jalan Tun Razak and Saville @ Mont’Kiara with an estimated gross development value (GDV) of RM400 million and RM430 million respectively, said executive chairman Tan Sri Alex Chen Kooi Chiew.

The company also plans to launch Phase 1 and Phase 4 of Hillpark @ Shah Alam North by June next year. The two phases will comprise 814 double-storey terraced houses with a total GDV of RM366 million.

Meanwhile, poised to be unveiled by March 2017 is the RM262 million mixed-use development MKH Boulevard 2. MKH will also launch Kajang 2’s Precinct 2, which consists of 198 double-storey terraced homes with a GDV of RM137 million.

According to MKH property director Datuk Chong Yong Han, 40% of the new launches will be priced below RM500,000 and the rest will be priced at a range of RM500,000 to RM750,000.

"In terms of property types, 30% to 40% of the new launches will comprise landed houses," added Chong.

Looking forward, MKH plans to expand its property development business overseas. It is also studying the viability of venturing into the recreational business and how it can synergise with its property development segment.

"The company is looking to venture into new businesses, but we are taking a very cautious and selective approach," Chen said.

Meanwhile, MKH has proposed a renounceable rights issue of one rights share for every 10 existing MKH shares held and two bonus shares for each rights share subscribed to raise approximately RM80 million to fund its property developments together with the related infrastructure, payment of landowners' entitlement and working capital.