KUALA LUMPUR: DPS Resources Bhd, via its wholly-owned subsidiary, Shantawood Sdn Bhd (SSB), is acquiring a piece of freehold land measuring 2.85 hectare in Melaka from Bao Long Marketing Sdn Bhd for RM6.1 million.
In a statement today, group managing director Edward Sow Yuen Seng said the acquisition of the freehold land in Mukim Tanjong Minyak in Melaka, is in line with the company's strategy to build up its landbank and expand its property development business in the state through the acquisition of strategic lands.
"We're excited with the opportunities and development plans that the company has in Melaka over the next five years," he said.
Prior to the acquisition of freehold land, DPS has already been actively engaged with different parties to build up its land bank in Melaka.
At the mid of this month, SSB signed a joint venture agreement with Rembia Properties Development Sdn Bhd (RPD) for the development of a mixed property project with a gross development value (GDV) of RM150 million in Melaka.
Sow said the latest acquisition of the freehold land suits the company in terms of its valuation, potential development in the future, and the location that is adjacent to its existing land.
"We have planned ahead for the property development projects that we envisioned in Melaka.
"With the strong potential in Melaka's property market, we are optimistic that this acquisition will put us in a good position to create economic value and contribute to the company's future earnings.
"In addition, the land is strategically located in matured Mukim Tanjong Minyak area with the main road frontage, making it ideal for mixed residential development," Sow added.
DPS is looking forward to explore the acquisitions and planned joint ventures in the property development in Melaka, Negeri Sembilan and Selangor, following a strong financial for its financial year ended March 31, 2021 (FY21) despite of the Covid-19 pandemic.
For FY21, DPS' net profit increased 14.2 per cent to RM12.05 million from RM10.55 million, while revenue grew 74 per cent to RM78.72 million from RM45.24 million.
This was driven by the company's push in its property development in Melaka.
"We're starting to see the results of our investment and effort in property development business in Melaka.
"With our continued expansion, we're confident that this will help to sustain our earnings growth," said Sow.