AmCorp Properties benefiting from overseas ventures amid weakening ringgit Thursday, 3 September 2015
KUALA LUMPUR: The weakening ringgit is impacting Amcorp Properties Bhd (AmProp) positively as it expects higher revenue from its overseas ventures.
Its managing director, Ben Lee Keen Pong, said on Thursday AmProp has expanded to cities like London and Tokyo where the international investors were.
He said in London, the company's ongoing projects' gross development value (GDV) was about RM1.4bil.
"They are expected to be completed by end-2016 when the profit would be recognised, he said.
"This is very prudent. With the pound sterling appreciating, the revenue would have gone up but would only be quantified when we recognised the profit," he told reporters after the AGM.
Moving forward, Lee said, despite the loans being in British pounds the company's investment did not require any hedging as the group would get revenue in the same currency plus it had enough pounds to meet capital commitment.
On the group's local business, he said, the GDV for ongoing projects totalled RM270mil based on the launched phases of Sibu Jaya Township.
Amprop Sibu Jaya township comprises of about 279 hectares and the group's total landbank to date is about 392.5ha, he said.
"The group is also eyeing to transplant its successful venture into renewable energy segment business model to expand overseas especially Asean countries, he said.
For the financial year ended March 31, 2015, the group's pre-tax profit fell to RM41.20mil from RM153.73mil a year. Revenue, however, rose to RM173.61mil from RM170.19mil previously. - Bernama
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