I have a Milux oven toaster which was given to me by someone during the house warming of my first apartment 12 years ago. It served me for many years and when I sold my apartment, that oven toaster was also part of the deal. Basically, the buyer got everything I left behind including even washing machines, fridge and more. Today, I read in The Star that Milux will be diversifying into property development and its maiden development would be in Bentong, Pahang. The development consists of five blocks of condominium with retail and club facilities.
I am a little surprised with the gross development value which has been announced as RM2.13 billion. This is definitely not a small project and is expected to begin in June 2017 complete in the year when Malaysia celebrates the year of Vision 2020. The project would be a joint-venture between Milux’s wholly-owned subsidiary and RGF Land Sdn Bhd’s RCSB. RGF Land is also a major shareholder of Milux, with a 13.78% stake. The proposed project is known as “Pentagon Genting Highlands.” I think this meant that it will be a cooling place which is a good attraction indeed as Malaysia is HOT all year round.
Milux said that it is venturing into the property segment because of the increasingly competitive market in the household appliance industry and that this new business will generate additional income to the group. Actually, as long as it has a capable team to execute this, it should be okay. The worry for companies which are venturing into property development for the first time is always on the experience and expertise. Many times, a good potential project may not be marketed well or the construction was not proceeding smoothly etc. Well, 2017 is some time away, we will see what they announce in the near future. I have never been to Bentong, Pahang yet.
written on 23 Oct 2015
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