Fajarbaru expects growth from new initiatives in Malaysia and Australia

 By Sharen Kaur - Published in NST Property, April 10, 2023 

An artist’s impression of Vierra Residence Kinrara. Image credit: vierraresidence.com.my

sharen@nst.com.my

Fajarbaru Builder Group Bhd plans to expand its property development footprints in Peninsular Malaysia and Australia, subject to market conditions, said Tan Sri Chan Kong Choy, the company's executive chairman.

He also said that the group intends to constantly bid on prospective infrastructure and rail-building projects.

According to Chan, the current expansion of Fajarbaru would be aided by construction projects such as the development of Duta Park and Pavillion Mont Kiara.

The group is also planning new projects, including Desa Green in Kelantan, as well as The Wilds and the Fitzroy development in Melbourne, Australia, he said in a statement issued last week.

The Wilds located in Northcote, Melbourne, is set to be a benchmark in Environmentally Sustainable Design principles and will become the first carbon-neutral detached housing development in inner Melbourne.

On the group's ongoing property project, Vierra Residence @Kinrara, Chan said that around 95 per cent of the units have been taken.

Vierra Residence @Kinrara in Puchong is based on the concept of Residensi Wilayah Keluarga Malaysia (RUMAWIP) and it was launched in 2022.

Fajarbaru recorded a revenue of RM67.87 million in the second quarter of its financial year ending December 31, 2023, as compared to RM56.42 million in the preceding year's corresponding quarter.

Despite higher revenue, the group recorded a net loss of RM2.41 million, versus a net profit of RM4.3 million in the preceding year's corresponding quarter.

In a stock exchange filing on Feb 23, Fajarbaru said the higher revenue was mainly attributed to the construction and investment holding segments while there was a decrease in pre-tax profit across all the segments.

The property development segment recorded a revenue of RM14.87 million in the quarter under review as compared to a revenue of RM31.15 million in the preceding year's corresponding quarter. The pre-tax profit was RM5.38 million as compared to a pre-tax profit of RM7.65 million in the preceding year's corresponding quarter.