Scientex ... Feb10

Scientex Quatari Sdn Bhd, the property division of industrial plastic products manufacturer Scientex Bhd, is planning to launch a high-end property project in Pulai, Johor to take advantage of the increasing demand for housing in the area.

Slated to be launched in the second half of 2010, the new project worth more than RM1 billion on 58ha of freehold land will be a departure from the group’s current property developments in Kulai and Pasir Gudang, which mainly cater to the lower middle-income group.

The land in Pulai was acquired in October 2009 when Scientex Quatari bought over Johline Realty Sdn Bhd, a Johor-based property developer, for RM65.31 million. The purchase was funded by internal funds and bank borrowings of RM25.31 million and RM40 million, respectively.

Johline has another piece of freehold land measuring 4.4ha in Plentong, also within the Johor Bahru enclave. The acquisition of the loss-making Johline was completed earlier this month and will serve as the springboard for Scientex’s property ambition in Johor.

Its flagship property project is Taman Scientex in Pasir Gudang, a township development on a 445.5ha land with a gross development value of RM1.2 billion.

In terms of revenue, the property division has managed to rake in sales of more than RM50 million in the first six months of the financial year ending July 31, 2010. The group is also planning to launch another 800 houses, including 200 in Taman Scientex and 400 in Kulai this year.

Moving forward, the property division would be one of the major revenue contributors to the group and Scientex was still looking at expanding its landbank to position itself for an eventual upturn in the property market.