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PAVILION BUKIT JALIL | Kuala Lumpur (Bukit Jalil City)

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Ho Hup to turn around by end-2010

KUALA LUMPUR: Ho Hup Construction Co Bhd aims to get its PN17 status lifted by the first quarter next year and return to the black by end-2010, says newly appointed group managing director Lim Ching Choy.

To do that, he said Ho Hup would focus on its property development business that could generate faster income apart from its corporate restructuring, which started June 1.

“We are counting on the jewel of our business at this moment, which is the Jalil City, a mixed lifestyle residential and commercial development at Bukit Jalil on a 60-acre site,” he told a media roundtable session yesterday.

Lim said under the corporate restructuring, it was focusing on capital reduction, capital injection and also selling non-core land assets.

“Our debt level is currently at about RM113mil of which RM80mil is owed to CIMB. The income from the sale of our land will help us to reduce the debt to about RM70mil.

We hope to settle our debt within five years,” he said.

Lim, who joined the company on June 1, said he was a multi-tasker. “I prefer to do things faster so that revenue for the company can come faster too,” he said, adding that after two successful turnarounds for the companies he worked with, he was confident his plans and style of work would be fruitful at Ho Hup.

“Since the first day of my work here, I’ve been meeting with many bankers on financial plans and assistance and after they looked at my track records, their response had been very positive.

The company would now focus mainly on property development, he stressed.

“We have already submitted five tenders for local projects involving construction of roads and civil works via a consortium and on our own.

“Each tender is valued at RM100mil to RM200mil and the results will be known in a few months,” he said, adding that the company had an advantage of having its own construction division with its own machinery.

On Jalil City, Lim said the project, with a gross development value of RM1.75bil, would comprise 176 units of lifestyle shops/offices, a hypermarket and supermarket, an 1,800-unit condominium, among others. “We are already talking with three major hypermarket players to run their business there, hopefully by year-end,” he said, adding that the development would take eight to 10 years to complete.:banana::banana:
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Ho Hup: New jobs to help bring back profits
By Sharen KaurPublished: 2009/06/18

PROPERTY and construction firm Ho Hup Construction Co Bhd (5169) is betting on its RM2 billion Jalil City development and new jobs to return to profitability next year.

Group managing director Lim Ching Choy said at a media briefing yesterday that it had bid for five road projects worth RM500 million and hoped to get one or two jobs this year.

He said that Ho Hup's ready-mix business was set to improve as it reactivated its eight plants in Terengganu, Klang, Bukit Jalil and Jinjang to increase volume and generate RM6 million in revenue this year.

The group's property, construction and ready-mix divisions are expected to contribute 30 per cent, 8 per cent and 5 per cent profit margins respectively.
Lim, who joined Ho Hup on June 1, is spearheading its corporate restructuring to reduce debt, inject new capital, sell non-core assets and generate revenue to become profitable.

The financially troubled firm has been in the red since 2006. In the fiscal year ended December 31 2008, its net loss was RM56.2 million.

Ho Hup is gearing to launch Jalil City in Bukit Jalil in the fourth quarter, which will help in its turnaround.

Lim said his immediate plan was to reduce the company's debt to RM60 million, from RM113 million, by the first quarter of next year.

This will be done through a capital injection and sale of non-core assets, saving it RM4 million. Ho Hup is banking on Jalil City to pay off the rest of its borrowings in five years.

The 24ha Jalil City is poised to contribute 60 per cent to 70 per cent of revenue a year, Lim added.

"Ho Hup is facing cash flow problem. When you have cash flow, the margins are different. We have a diamond which needs to be polished. I will monitor the cash flow on a weekly basis. Since I came in, I have generated RM3 million in cash," he said.

Jalil City, to be developed over six years, will feature 176 shop-offices housed in four- to eight-storey buildings, a hypermarket, a piazza, 2,000 serviced condominium units, and a Grade A office building.

According to Lim, Ho Hup will launch the shop-offices, worth RM600 million, by December, concurrently with the 400,000 sq ft hypermarket and condominiums.

It hopes to lease the hypermarket to Carrefour, Tesco or Giant before the launch.

Lim also told Business Times that Ho Hup will retain the office building, piazza, hypermarket and several of the shop-offices as investments, giving it a new income stream.

He said Ho Hup stood to close three en bloc deals by December for some of the shop-offices.
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Ho Hup confident of PN17 exit by early 2010
By Sharen Kaur
Published: 2009/06/29

Loss-making Ho Hup is expected to reduce its debts of RM113 million to RM60 million by the first quarter of next year

HO HUP Construction Co Bhd (5169) aims to move out of PN17 classification by the end of 2009 or early next year, its group managing director Lim Ching Choy said.

AmMerchant Bank Bhd is now advising the property and construction company on its restructuring exercise.

"Based on advice from AmMerchant, we have a strong possibility of moving out of PN17 with the cash flow and business model that we have in place," Lim told Business Times.

PN17 stands for Practice Note 17/2005 and essentially means a listed company is in financial trouble, either because successive losses have eroded its shareholders' funds, receivers and managers have been appointed, or the company has ceased its business operations.

Loss-making Ho Hup is expected to reduce its debts of RM113 million to RM60 million by the first quarter of next year through a capital injection and sale of non-core assets, saving it RM4 million.

It is also banking on its Jalil City property development in Kuala Lumpur to pay off the rest of its borrowings in five years.

"My reason for coming into this company was because I saw a lot of potential in its construction and property development divisions. We are looking at many potential jobs and studying them to see if they our viable for us to commit to," Lim said.

Lim, 49, added that Ho Hup will continue to construct buildings, highways, roads, dams, reservoirs and water treatment plants.

The company, which has been involved in the construction industry for 49 years, will focus on Malaysia so the projects could be better managed and there would be less risks in terms of payment and completing the jobs on time.

Lim, however, did not discount the possibility of entering India or other Asian markets in the future.

Ho Hup had been involved in several projects in India before, involving mega infrastructure projects, and Madagascar.

"Before I joined Ho Hup I studied all its past and present positions to see whether I would have the ability to turn it around without hitches. I believe in the company and know it will grow to the level it was before. There must be commitment from all parties and confidence from shareholders," Lim said.

Ho Hup was co-founded in 1960 by the late Low Chee, who has been the main driving force behind the company's development, growth and expansion.

The company's involvement in the various fields of building and civil engineering has seen it successfully completing numerous contracts from both the private and government sectors like TNB, PLUS, JKR, Petronas, DBKL, UDA Holdings, PKNS and KTMB.

In April 1973, Ho Hup changed its status from a partnership to a private limited company, and was converted to a public limited company in 1991.
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Ho Hup drafting turnaround strategy
By Sharen Kaur
Published: 2009/06/29

The three-year business plan will see the company operating under three business entities - construction, property development and trading of ready-mix

Property and construction company Ho Hup Construction Co Bhd (5169) said it is drafting a three-year business plan that will see it return to profitability next year and ensure that its profitability will continue into the future.

The plan will see the company operating under three business entities - construction, property development and trading of ready-mix - to be headed by three individuals who will lead a team of staff to drive up sales.

"Each head of division will have to come up with their own business plan, which I will enhance to ensure that they are profitable from day one. I will monitor their progress every two weeks," Ho Hup group managing director Lim Ching Choy told Business Times.

"At the end of the day, I am here to make profits for the company and enhance shareholders value. Two years from now, we may have a dividend policy," he said.
Lim, formerly the chief executive officer (CEO) of property developer Magna Prima Bhd, took helm at Ho Hup on June 1 2009.

Dubbed "the turnaround man", he was asked to helm Ho Hup by its major shareholders to return it to profitability.

The company has been in the red since 2006. In the fiscal year ended December 31 2008, its net loss was RM56.2 million.

Lim said he has been spearheading Ho Hup's corporate restructuring to reduce debt, inject new capital and generate revenue since he took office.

"You need six months to reposition, turn around and overhaul the business of an ailing company. I will be doing a lot of things in the next six months what other people have not done in the last five years. I believe a good working philosophy and commitment from myself is important to make things work in a short span of time," Lim said.

Lim, who was in banking for 22 years, had turned around loss-making Magna Prima in 12 months. Prior to that, he had rebranded and repositioned Mah Sing Group Bhd in 18 months.

He was involved in both companies for 30 months and four-and-a-half years, respectively.

"I may stay longer in Ho Hup. It has all the licences for any kind of construction jobs. That alone is encouraging and rewarding," Lim said.

Ho Hup is betting on its RM2 billion Jalil City development in Bandar Bukit Jalil, Kuala Lumpur, and new jobs to return to the black next year.

The 24ha project, which will be launched in the fourth quarter, is poised to contribute 60-70 per cent of the company's revenue per year, starting from 2010.

It features 176 shop-offices housed in four- to eight-storey buildings, a hypermarket, a piazza, 2,000 serviced condominium units, and a Grade A office building.

"We will launch the offices worth RM600 million in two phases. We hope to complete sales in a year. We have more than 100 registrations," Lim said.

Ho Hup will also launch 20 semi-detached houses in Bandar Bukit Jalil, worth RM1.5 million each or RM30 million in total, in September.

Apart from residential projects, it will look to clinch government contracts involving infrastructure and high value construction works, and develop mega projects as it had previously.

Ho Hup has bid for government and private sector road and related infrastructure jobs worth RM500 million and hopes to get one or two this year.

Its ready-mix business is also set to improve as it is reactivating its eight plants in Terengganu, Klang, Bukit Jalil and Jinjang to increase volume. The unit is expected to generate RM6 million in revenue this year.
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Ho Hup may develop Bukit Jalil land
By Kamarul Yunus
Published: 2009/07/09

HO HUP Construction Co Bhd (5169)may jointly develop its 4.3ha land in Bukit Jalil after shareholders blocked a plan to sell the piece of property.

Ho Hup wanted to sell the land to Permata Juang (M) Sdn Bhd, a unit of Magna Prima Bhd, in a related party transaction for RM19.4 million.

Its deputy executive chairman Datuk Lye Ek Seang is also a director of Magna, while its current managing director Lim Ching Choy was a former executive director in Magna up to May 14.

The freehold land in Bandar Bukit Jalil cost Ho Hup RM11.82 million, and a sale would have brought in a gain of RM7.58 million.

Ho Hup, bleeding red ink since 2006, had proposed the sale to help pare down RM104.52 million debts.

"We withdrew (the resolution) because we did not have enough shareholders' support. We need time to pass (the resolution). We will look for options ... sell the land or find a joint-venture partner to develop the land," Lim said after Ho Hup's extraordinary general meeting in Petaling Jaya yesterday.

Shareholders, however, approved another resolution to sell 2.2ha of land in Bukit Jalil to Santari Sdn Bhd for RM9.8 million.

Lim also said that in the next six months, the company expects to generate revenue by asset sales as well as developing the remaining 24ha of land it still has in Bukit Jalil.

"This 24ha land is earmarked for a mixed development, comprising shop apartments, lifestyle piazza and office blocks. We expect to launch the development by next year," he said.

Lim declined to disclose the gross development value of the project, but it was learnt that it is valued at RM1.6 billion.

Elsewhere, Ho Hup is also looking to build some 20 units of semi-detached houses in Bukit Jalil, valued at RM30 million. The project is expected to be launched in September this year.

"We are also active in Madagascar, whereby we have got back our machinery, valued at RM21 million. We are now pursuing machinery rental to get income from there.

"We have started negotiations with interested parties. Once contracts are finalise, we will make an announcement," he said.

Moving forward, he said Ho Hup will focus on its core businesses of construction, property and trading, including the rental business in Madagascar.

He said the company expects its property business to contribute between 70 per cent and 80 per cent to the group's revenue.
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Proposed development at Bukit Jalil - probably One Jalil

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dem dis project totally marvelous!!

Jalil Park City will feature:

• 1800 units of lifestyle residential condominium with spectacular view of Bukit Jalil Park and Bukit Jalil Golf & Country Club
• 176 units of lifestyle shops/offices (4-8 storey shop / office)
• A 9.15 acres hypermarket
• A lifestyle central Piazza with commercial lots for food and beverage as well as entertainment spots
• SOHO Offices
• Small, Medium and Luxury Serviced Apartments
• A Grade “A” Office Tower
• A Condo Hotel

for bigger render click
nazrey tolong post bigger render...
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cool..but the name jalil city kinda weird...hehe...
cool..but the name jalil city kinda weird...hehe...
sebab location di bukit jalil
another proposal maybe
but dis 1 got LRT meh

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is look like two projects. One is opposite Sirim and one is next to bukit OUG. The jalil city will be the opposite sirim. The next to bukit OUG may be the retail and office.
^^ cool project!another huge one in the making.. :) :cheers:
Ho Hup sees RM400m GDV for Jalil Green City
Published: 2009/12/31

HO Hup Construction Company Bhd, the country's oldest construction company, expects a gross development value (GDV) of RM400 million for phase one of the Jalil Green City project.

The mega integrated lifestyle development project comprising eight phases of development will commence construction next year.

The first phase, consisting of eight-storey offices, five-storey offices and signature offices is expected to be completed in three years.

"We expect to finish all eight phases of development over 24 hectares of land between eight and ten years.

"Total GDV for the entire project will be RM1.6 billion," said Ho Hup Managing Director Lim Ching Choy to reporters after the company's extraordinary general meeting (EGM) here today.

The remaining seven phases will consist of unique suites, shopping mall, "class A" office lots and residential projects.

Lim said the company was now in the final phase of securing a RM120 million bank loan for the project.

"Next year will be bright for us after sustaining several years of losses. We expect a huge turnover from this project and from one or two other deals which we hope to secure. We are optimistic of securing medium-sized government projects which we tender for recently," he said.

Lim was confident the projects would return Ho Hup back to its glorious days before the financial meltdown.

"Our market share currently is lower than a sub-contractor but we will hopefully increase it by the end of next year to a significant level," he added.

Meanwhile, Ho Hup expects its property division to contribute 70 per cent for the group's annual turnover next year.

"We have no specific contribution percentage for now as it is not significant like it was before.

"The property division, before the company's financial meltdown, was contributing 80 per cent annually to group turnover," he said.

Ho Hup is driven by its three arms namely its property, construction and trading divisions.

Earlier, at the EGM, shareholders approved the resolution to dispose two parcels of freehold vacant land in Hulu Langat and Kuala Lumpur.

When asked about the internal tussle between the management and major shareholders, Lim said the company was currently focusing on a new direction for the company next year.

The tussle was made public in the media by major shareholder Low Tuck Choy, who alleged the Ho Hup management sold two parcels of lands in Balakong and Bukit Jalil below market value.

"The 2.2 hectare land in Balakong for instance, has a lot of disadvantages. There is no proper road or pathway to the land. Besides there is a river and drain reserve which the new owner will have to give up to the government, as required by the law, if he wants to develop the land.

"I believe the RM30 per square feet price tag is not low after considering all these obstacles that the buyer will have to face," Lim reiterated.

He said the company was open to further negotiations and welcomed the support and response of shareholders at each annual general meeting or EGM.

Low, however, was not present at the EGM. - BERNAMA
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LAKARAN artis menunjukkan ilustrasi pembangunan integrasi Jalil Green City di Bukit Jalil, Kuala Lumpur.
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Ho Hup pertaruh nasib bangunkan Jalil Green City

PETALING JAYA - Syarikat pembinaan, Ho Hup Construction Company Bhd. merancang memulakan projek pembangunan integrasi membabitkan plot tanah 24 hektar di Bukit Jalil mulai tahun ini.

Pengarah Urusan Kumpulannya, Lim Ching Choy berkata, projek yang dinamakan Jalil Green City itu akan mempunyai lapan komponen dan kerja pembangunan dijangka mengambil masa sehingga 10 tahun.

"Projek itu merupakan pembangunan integrasi gaya hidup yang menampilkan kedai pejabat lima hingga lapan tingkat, pejabat utama 12 tingkat, unit SOHO, unit pejabat, gedung beli-belah, blok pejabat premium, kondominium dan hotel," katanya pada sidang akhbar selepas mesyuarat agung luar biasa (EGM) di sini semalam.

Katanya, fasa pertama projek yang melibatkan pembinaan kedai pejabat lima hingga lapan tingkat dan pejabat utama 12 tingkat akan mula dibina pada tahun ini.

"Kami menjangkakan nilai pembangunan kasar (GDV) bagi fasa pertama ialah sebanyak RM400 juta manakala GDV bagi keseluruhan projek hartanah itu dijangka mencecah RM1.6 bilion," katanya.
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