KUALA LUMPUR: Property developer Ken Holdings Bhd hopes to kick-start its mixed development in Kelantan which has a potential gross development value (GDV) of RM80 million, by the end of this year, said executive chairman Datuk Kenny BK Tan.

“We have got approvals but now we are amending the design [of the development] because of last year’s flood issue,” Tan told reporters after the group’s annual general meeting yesterday.

He added that the resubmission of the design will be done soon and he hopes the group will be able to take on the job by either the third or fourth quarter of this year.

“We just need to resolve the land ownership matter with the Kelantan state government. That is the only issue we have left,” noted Tan.

Ken Holdings in October 2013 signed a collaboration agreement with Perbadanan Kemajuan Iktisad Negeri Kelantan (PKINK) to build Kelantan’s first green development in Kota Baru.

The proposed mixed development features over 200 condominium units and a 150-room hotel that will come with green features such as rainwater harvesting, the use of low-volatile organic compounds materials, lush landscaping and adjustable glass louvred windows.

“The condominium block will have an estimated GDV of RM20 million to RM30 million, while the hotel has an estimated GDV of RM40 million to RM50 million,” said Tan.

He added that the hotel will enhance the group’s recurring income contributions.

In the more immediate term, Tan said Ken Holdings is looking at an annual recurring revenue of RM10 million with the completion of the group’s double platinum corporate office — Menara Ken @ TTDI in Taman Tun Dr Ismail — by the end of this year.

Tan said the group is in talks with some potential tenants for the over 200,000 sq ft net lettable area of office space and has confirmed tenants for several food and beverage outlets.

For the financial year 2014 ended December (FY14), Ken Holdings saw its net profit increase to RM31.95 million from RM20.89 million in FY13. This was achieved on a higher revenue of RM91.08 million from RM55.82 million previously.

Tan, meanwhile, is of the view that there will still be strong demand for its residential and office space as the group caters to a niche market with an emphasis on green developments.

This article first appeared in The Edge Financial Daily, on April 14, 2015.