KUALA LUMPUR: NWP Holdings Bhd will leverage on GS Realty Sdn Bhd's expertise as part of its diversification plans into the property development.
In a statement today, NWP said it had entered into a memorandum of understanding (MoU) with Datuk Seri Nelson Kee Soon Ling last month.
Kee, a director and substantial shareholder of NWP and GS Realty, will sell his stake in the real estate agency to NWP.
NWP said Kee was looking to inject property projects with a total gross development value of RM150 million to transform the company into a property developer.
NWP added that the recent court hearing concerning partnership might have boosted the proposed plans for the group to venture into property development.
It said the incumbent board continued to be in charge of NWP while the requisitionists, Datuk Seri Mak Hon Leong and Tan Vei Teck, were to refrain from holding out as directors.
The group said it would realign its focus on its diversification strategy to boost its turnaround plans.
This includes the continuation of the MoU discussions for its venture into the property development business, which will be supported by Kee's vast experience in the property market.
NWP said Kee was one of the driving force behind GS Realty that had led to the explosive growth in the agency.
GS Realty was incorporated in 2010 with a myriad of branch offices and representatives throughout Malaysia and partners in the Asean region.
"We are excited with the prospect of our diversification plans into the property development business, and given the vast experience of GS Realty as a real estate agency in Malaysia and Kee's involvement in the company, we are confident that our property development's venture will take off.
"Their experience and understanding of the Malaysian property market will help the grou to meet the rising demand for affordable housing in the country," the statement said.
NWP said it was an opportune time as the group's legacy business in timber products manufacturing continued to struggle following the pandemic.
The diversification into property development is the management's plans to turn around after it had entered into the motorcycle business last year, which was expected to contribute between RM6 million and RM7 million to the top line this year.