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Asian Pac Holding
Dato’ Mustapha Bin Buang, Director Asian Pac Holding

Asian Pac Holdings is a company listed on the Bursa Malaysia with operations in investment holdings, property investment, and development of commercial and residential buildings. Inside Investor talked to Dato’ Mustapha Bin Buang, the group’s Managing Director, about the company’s milestones and future plans.

Q: Can you give us an overview of the history and structure of Asian Pac Holdings?

A: We have quite a long history. The company was incorporated in 1913 as a limited company and was listed on the Main Board of the Kuala Lumpur Stock Exchange in 1961. Our three main core businesses during the 1990s were : Property, insurance, and stock broking. In 1997, during the Asian financial crisis, we rationalised our operations, sold out the insurance and stock broking arms, and continued to focus on the property business. We now have a track record of over 15 years and are very strong on the regional market, for example in Klang Valley. We have earned a reputation to deliver on time, in most cases even early, to deliver good products, and having a very attractive pricing. People who are buying from us actually are making money very quickly on a resale. In the future, property will remain our focus. However, in terms of revenue, we want to have a recurring income from our projects. One example is our project in Kota Kinabalu, KK Times Square. We have completed phase 1 for the signature offices, and phase 2 will be a 15 acre area with five blocks of private residences and a mall. The gross value of the mall project alone is RM1.2 billion. We are selling the private residences and renting out the exterior shops and the mall space. The mall with about 300 retail lots will be completed in 1st quarter of 2014, and we are going to manage it as an owner which is a new concept in Kota Kinabalu. As a mall owner, we can determine the standards, and in return the standards are determining our yield. The Mall net lettable space is 800,000 square feet on four floors and has already attracted strong response from international and regional fashion brands. Parkson has signed up as the mall’s anchor tenant.

Q: Who are the major shareholders of your company?

A: We have two major shareholders, one is Mr. Mah Sau Cheong, a businessman and investor, and the other one is our sister company, South Malaysia Industries Berhad. It is also listed at the Bursa Malaysia.

Q: Any plans for expansion within Malaysia?

A: We believe that there are three regions in Malaysia that have good prospects for the developer business. The first one is obviously Kuala Lumpur, where we already have a strong presence. Another area in which we have a strong confidence is Johor Bahru, which has a great potential because of its vicinity to Singapore and the supporting policy of the government to develop this area. The third area we are looking at very closely is Sabah. We have built up a presence there, and want to expand our business, if opportunities arise, from Kota Kinabalu to Sandakan.

Q: What kind of opportunities are you looking for?

A: As a developer, our focus is to generate income, recurring and sales in a 50:50 ratio. For example, we are renting land to Carrefour and for car parks. I believe that the car park business has future potential, and this is why we are looking at acquiring a company which is engaged in this sector. Another will be the mall business, with leasing as a main income generator. When the mall in Kota Kinabalu will be finished, we are looking at six to seven per cent return.

Q: Are you open for investors, for example from the GCC?

A: Yes, we are, but it should be a long-term commitment. We can work together with an investment partner to create added value from what we already have.

Q: How did the company perform in 2011?

A: Well, 2011 was a very challenging year, we faced some issues which we tried to sort out. Regarding our performance, we have been in the black for the last five years. In the future, past 2012, we are expecting higher revenue and cash flows from of all the ongoing projects and new launches.

Q: What is the target market for your residential developments?

A: We are building houses and apartments for the medium to upper middle-class. Our products range from $300,000 to $4 million at the high-end.

Q: How would you sum up Asian Pac Holdings’ position in the market?

A: We believe we are on the right track, our business model is very efficient as we are a niche developer and have a quick turnaround – when there is a project, we are in, and within the next three years we are out. By 2015, we want to be a leading player in the market and benchmark ourselves against the big guys.

 

 

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Reading Time: 3 minutes

Dato’ Mustapha Bin Buang, Director Asian Pac Holding

Asian Pac Holdings is a company listed on the Bursa Malaysia with operations in investment holdings, property investment, and development of commercial and residential buildings. Inside Investor talked to Dato’ Mustapha Bin Buang, the group’s Managing Director, about the company’s milestones and future plans.

Reading Time: 3 minutes

Asian Pac Holding
Dato’ Mustapha Bin Buang, Director Asian Pac Holding

Asian Pac Holdings is a company listed on the Bursa Malaysia with operations in investment holdings, property investment, and development of commercial and residential buildings. Inside Investor talked to Dato’ Mustapha Bin Buang, the group’s Managing Director, about the company’s milestones and future plans.

Q: Can you give us an overview of the history and structure of Asian Pac Holdings?

A: We have quite a long history. The company was incorporated in 1913 as a limited company and was listed on the Main Board of the Kuala Lumpur Stock Exchange in 1961. Our three main core businesses during the 1990s were : Property, insurance, and stock broking. In 1997, during the Asian financial crisis, we rationalised our operations, sold out the insurance and stock broking arms, and continued to focus on the property business. We now have a track record of over 15 years and are very strong on the regional market, for example in Klang Valley. We have earned a reputation to deliver on time, in most cases even early, to deliver good products, and having a very attractive pricing. People who are buying from us actually are making money very quickly on a resale. In the future, property will remain our focus. However, in terms of revenue, we want to have a recurring income from our projects. One example is our project in Kota Kinabalu, KK Times Square. We have completed phase 1 for the signature offices, and phase 2 will be a 15 acre area with five blocks of private residences and a mall. The gross value of the mall project alone is RM1.2 billion. We are selling the private residences and renting out the exterior shops and the mall space. The mall with about 300 retail lots will be completed in 1st quarter of 2014, and we are going to manage it as an owner which is a new concept in Kota Kinabalu. As a mall owner, we can determine the standards, and in return the standards are determining our yield. The Mall net lettable space is 800,000 square feet on four floors and has already attracted strong response from international and regional fashion brands. Parkson has signed up as the mall’s anchor tenant.

Q: Who are the major shareholders of your company?

A: We have two major shareholders, one is Mr. Mah Sau Cheong, a businessman and investor, and the other one is our sister company, South Malaysia Industries Berhad. It is also listed at the Bursa Malaysia.

Q: Any plans for expansion within Malaysia?

A: We believe that there are three regions in Malaysia that have good prospects for the developer business. The first one is obviously Kuala Lumpur, where we already have a strong presence. Another area in which we have a strong confidence is Johor Bahru, which has a great potential because of its vicinity to Singapore and the supporting policy of the government to develop this area. The third area we are looking at very closely is Sabah. We have built up a presence there, and want to expand our business, if opportunities arise, from Kota Kinabalu to Sandakan.

Q: What kind of opportunities are you looking for?

A: As a developer, our focus is to generate income, recurring and sales in a 50:50 ratio. For example, we are renting land to Carrefour and for car parks. I believe that the car park business has future potential, and this is why we are looking at acquiring a company which is engaged in this sector. Another will be the mall business, with leasing as a main income generator. When the mall in Kota Kinabalu will be finished, we are looking at six to seven per cent return.

Q: Are you open for investors, for example from the GCC?

A: Yes, we are, but it should be a long-term commitment. We can work together with an investment partner to create added value from what we already have.

Q: How did the company perform in 2011?

A: Well, 2011 was a very challenging year, we faced some issues which we tried to sort out. Regarding our performance, we have been in the black for the last five years. In the future, past 2012, we are expecting higher revenue and cash flows from of all the ongoing projects and new launches.

Q: What is the target market for your residential developments?

A: We are building houses and apartments for the medium to upper middle-class. Our products range from $300,000 to $4 million at the high-end.

Q: How would you sum up Asian Pac Holdings’ position in the market?

A: We believe we are on the right track, our business model is very efficient as we are a niche developer and have a quick turnaround – when there is a project, we are in, and within the next three years we are out. By 2015, we want to be a leading player in the market and benchmark ourselves against the big guys.

 

 

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