UBB Targets RM2 Billion Property Sales In Next Five Years

GEORGE TOWN, May 14 (Bernama) -- United Bintang Bhd (UBB), an importer and exporter of used and reconditioned heavy machinery, is eyeing RM2 billion worth of property sales on Penang island over the next five years following its venture into property development.

Executive Chairman and Chief Executive Officer of Ideal Property Group Datuk Alex Ooi, who is a major shareholder of UBB with a 32 per cent stake, said the group's focus would be on Penang island, and potential joint-ventures with landowners had been lined up under its five-year plan.

He said the company would convert UBB's core business in heavy machinery to property development in Penang.

"We are planning to acquire more land on Penang island for development as we are eyeing at least RM2 billion sales in the next five years," he told Bernama after UBB's extraordinary general meeting here Wednesday.

He said the group was looking at RM500 million worth of land acquisition over the next 12 months, consisting of a 14-hectare area in Penang.

Earlier, Ooi said the company's shareholders had approved the group's resolutions which included the proposed acquisition of property in Jalan Sultan Ahmad Shah and proposed portfolio diversification to capture new revenue streams.

He said UBB would work with Ideal Property Group, a Penang-based developer with 12 years of experience in the business.

"The shareholders also agreed to rename UBB to Ideal United Bintang Bhd (IUBB) and we will focus on projects in Penang for the next five years to gain strength before expanding," he said.

He said the group was looking at building more condominium projects on Penang island and it expected to launch the Northam Venture project along Jalan Sultan Ahmad Shah by year-end.

"It is a redevelopment project comprising 55 units of shop office, home office suites with an estimated gross development value of RM37 million.

"The project is expected to commence by the end of this year and complete in the next 18 months," he said.