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Tuesday, July 1, 2014

Seacera - Aim To Be A Big Construction Cum Property Player

It had entered into a MOU with intelligent Fence Sdn Bhd to bid for a project to build and operate an electric security fence along Malaysia Thai border.

It has also ventured into the construction , property development and building material industries as well.

In Jan 2014, it acquired a 60% stake in SPAZ Sdn Bhd for rm3 million to make inroads into the construction sector. It had bagged a road construction project in Kelantan worth rm20.3 million.

It has also 500 acres in Sungai Long, Cheras with an estimated GDV of rm3 billion waiting to be developed.

The company had partnered two of China’s largest construction companies – Sinohydro Corp Ltd and Shanghai Construction Group Co Ltd – to bid for the 118 storey Warisan Merdeka.

SPZA has been in the construction for more than 20 years and has projects in hand that are worth rm350 million.

On June 2014, it had entered into a MOU with SPAZ, Sinohydro and Shanghai Construction to bid for the construction of Warisan Merdeka.

The pre qualified parties for the rm3 billion project are expected to be announced as early as July 2014. The tower is due for completion in 2018.

Seacera is bidding for the super structure of the project, not all of it, which is estimated to cost about rm1 billion to rm1.5 billion. The four parties will forms a JV or consortium if they get past the pre qualification stage.

International players will hold a dominant stake of 60% in the project while the local contractors will hold 40%.

In terms of funding of the mega projects, Seacera will not have a problem because it had completed two private placements and a rights issue.

Seacera is also looking at making property development a major part of its business, seeing that has a total of 570 acres in Cheras, Perak and Melaka.

Seacera bought the 250 acres in 2007. The value of the tract had doubled since Seacera had bought it. Once this development begins, expect a contribution of about rm300 million per annum for the next 10 years.

The group aims to be a big property developer.

Seacera has proposed to buy a 37 acre tract in Sri Alai, Meleka for m32.7 million and has 33 acre tract in Kamunting, Perak, where it plans to relocate its tile operation from Selayang.

On the company building material division, its tile business will remain the chief contributor to earnings. It had invested rm15 million in capex.

Its CEO sees Seacera becoming a property cum construction company in the next five years from 2014.

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