Melati Ehsan expects Sentul Utama project to boost profit
25/07/2006 Business Times (Malaysia)

PROPERTY developer Melati Ehsan Group expects its net profit to improve significantly next year, driven by the launch of its Bandar Sentul Utama residential project in Kuala Lumpur this year.

Group managing director Datuk Yap Suan Chee said the group is projected to exceed its average annual revenue of RM150 million in 2007.

"We expect to record a double-digit growth in revenue per year, spearheaded by the Sentul residential project and our other on-going property projects in Kuala Lumpur, Selangor and Johor, which combined is worth more than RM3 billion," said Yap.

Melati Ehsan expects to generate a gross development value of more than RM1.2 billion collectively for its existing housing projects and an additional RM600 million from the Sentul housing project.

Melati Ehsan took over Sentul Murni Sdn Bhd, a unit of Mycom Bhd and the developer of the Sentul residential project that was abandoned in 1994, via its wholly-owned unit, Paramount Avenue Sdn Bhd.

At the time when Melati Ehsan took over the project, only the first phase had been completed, while 80 per cent of Phase Two and the following phases were abandoned unconditionally.

Yap said Melati Ehsan expects to start work on Phase Two comprising four blocks of 17-storey condominiums as soon as the 400-odd squatters living within the development move out.