MCT seeking more land to serve as launch pad for future growth

MCT Bhd plans to acquire suitable new land banks situated in prime locations in the Klang Valley, to be new growth engines and serve as launch pads for future growth.

Chief executive officer Teh Heng Chong said the group’s strategies remain focused on the affordable to the mid-tier residential market in the Greater Klang Valley region with a high population catchment, where transport links and public facilities are well provided for.

Teh said MCT intends to spread its portfolio of developments to various growth corridors, expanding from the group’s existing base in Cyberjaya and Cybersouth.

“As a property developer, we need to continuously replenish our land bank to have a clear and sustainable growth plan,” Teh said, adding that this remains one of the group’s top priorities moving into 2021.

“We have set land acquisition targets in specific locations in established growth corridors in the Klang Valley,” he said at the group’s virtual shareholders’ meeting recently.

Also, MCT will continue to reap steady gains from its healthy landbank for ongoing and upcoming developments in new and different locations.

Of the 317.3 acres of landbank that MCT has, it has allocated 258.5 acres for future developments.

Teh said the group’s new and ongoing projects are expected to generate a gross development value (GDV) of about RM12.6 billion.

He added that the future launches will help MCT secure its revenue stream moving forward.

For the financial year ended 31 December 2019 (FY2019), MCT recorded revenue of RM459 million as compared to revenue of RM331 million in the year before that, despite the challenging market conditions.

Teh said the strong earnings were the result of sales from projects with high completion rates.

MCT’s aggressive approach to complete and deliver projects resulted in the group achieving a pre-tax profit of RM46 million for FY 2019.

The group’s cash and bank balance as at December 31, 2019, stood at RM470 million, up from RM344 million mainly from the higher completion rates of its on-going projects.

MCT is in the process of handing over 3,000 units to homeowners in Greater Kuala Lumpur.

This includes units for the group’s Selangorku PR1MA Lakefront Homes and Lakefront Residence Phase 2 at Lakefront @ Cyberjaya, as well as Casa Bluebell and Casa Wood @ Cybersouth.

The combined GDV of these four projects is RM1.2 billion.

According to Teh, MCT has delivered two projects with another two more scheduled for handover soon.

MCT recently launched two new projects, namely Casa Bayu @ Cybersouth, and PR1MA Shops in Lakefront @ Cyberjaya.

Teh said the group is also gearing towards the launch of Aetas, Damansara and Alira at Subang Jaya by December this year.

He said the total GDV of these new launches adds to over RM1 billion.

Source: NST