Management Discussion & Analysis


The Group registered a profit after tax (“PAT”) of RM145.2 million as compared with RM20.4 million in preceding year driven by our Overseas Properties Division. 
Profit after taxation 

Overseas Properties 
Contracting & Renewable Energy 
Malaysia Properties & Head Office 
The profit from Overseas Properties Division was primarily from London markets as the two projects namely Holland Park Villas and Burlington Gate achieved their practical completion in 2nd half of calendar year 2017, contributing RM107.7 million and RM56.4 million respectively. The sales of remaining units of Concieria Tower’s West and The Westminster Nanpeidai in Tokyo coupled with net rental income from Sampson House, London also contributed positively to the division. The profits from our overseas properties are only recognised on completion and hence contributed to the higher profits in the financial year.

At the local front, the Contracting and Renewable Energy segment recorded a higher net profit of RM3.5 million derived from higher profit margins and cost efficiencies in Contracting Division as well as higher precipitation at Sungai Perting that generated 36.3GWh of green energy. The Malaysia Properties and Head Office segment recorded a loss of RM18.0 million primarily due to lower sales of prime land in Kayangan Heights and residential units in Sibujaya as well as higher interest cost.

Given the current year’s improved performance, the Group’s shareholders’ equity has surpassed RM1 billion. The Group’s net asset per share now stands at RM1.55, up from RM1.42 as at 31 March 2017. The Group’s cash and bank balances has increased to RM430.3 million from RM165.9 million in preceding year derived from capital returns from Holland Park Villas and Burlington Gate projects. The additional cash balances contributed to a lower net gearing ratio of 19.1% from 32.1% previously. The Group’s borrowings have increased due to the drawdown of new facilities to finance the construction of hydro plant in Sungai Liang and for our equity investments in Spain.

The Board has proposed a final dividend of 4 sen per ordinary share amounting to RM23.7 million compared to 3 sen or RM17.8 million in preceding year.

        Burlington Gate, a bespoke luxury development inspired by the neighborhood’s rich cultural heritage deep within exclusive Mayfair.


London Properties

The Group is pleased to be part of the 2 completed flagship projects in central London which are Holland Park Villas and Burlington Gate. A total of 45 units including 3 penthouses were delivered to the buyers of Holland Park Villas with total sales value of £415.6 million (approximately RM2.3 billion). Burlington Gate achieved sales of £222.4 million (approximately RM1.2 billion) with 36 units sold at an average selling price of £3,722 per square feet. The remaining premium units for both projects with an estimated sales value of £246.0 million (approximately RM1.3 billion) were released for sale in phases since the completion in October 2017.

As the Group’s largest development in prime central London, the Bankside Yards comprises 2 properties which are Sampson House and Ludgate House, located adjacent to Tate Modern and Blackfriars Tube Station. This project located in the heart of London’s South Bank has an expected gross development value (“GDV”) in excess of £1 billion (approximately RM6.5 billion) and commands spectacular views of London City and River Thames. It involves a comprehensive redevelopment scheme into a world class residential-led mixed-use development project. During the financial year, the demolition process of Ludgate House was completed and it was granted planning approval on reduction of the existing two basements. Meanwhile, the joint venture managed to secure the rights over the railway arches for a lease period of 250 years, which adds a rare opportunity to provide the required amenities and experience for a vibrant community. An enhanced planning permission is being further refined to increase the total saleable area to approximately 1.2 million square feet.

Our other investment in prime central London, the 49 two-bedroom apartment block, Kilmuir House, underwent an extensive refurbishment in April 2017. Given the strategic location in the heart of Belgravia, the property is now fully let out. Both of these projects are expected to secure planning approval in 2018.

Westminster Nanpeidai
The Westminster Nanpeidai, located just minutes away from lively Shibuya, Japan.

Tokyo Properties

The Group’s 38.5% stake in joint venture with Grosvenor Asia Pacific and Nan Fung has seen satisfactory progress. During the financial year, the joint venture had successfully sold the remaining 7 units in Concieria Tower’s West, Nishi Shinjuku for ¥1.2 billion (approximately RM43.3 million) whilst The Westminster Nanpeidai, located in the stylish and affluent neighbourhood of Shibuya in central Tokyo saw another 15 units sold with total sales value of about ¥2.5 billion (approximately RM92.5 million) with 19 units remaining for sale. Following on-going transformational development and infrastructure improvements in the Shibuya area, The Westminster Nanpeidai project is expected to see continued interest and demand from both local and foreign investors.

The other remaining property consists of 62 apartment units in a mixed-use building known as Court Annex Roppongi, located adjacent to the prominent Roppongi Hills, one of Japan’s largest developments. Ownership of the apartments would enable the joint venture to participate in a new mega-redevelopment scheme led by Nomura Real Estate Development, transforming the subject property and surrounding buildings into a new mixed-use development comprising retail, office and residential units of which the joint venture would have strata ownership in the new development via an equivalent exchange programme. The joint venture plans to exit the project by disposing the strata rights obtained around 2020. To-date, about 46.9% or ¥1.4 billion (approximately RM51.0 million) out of invested capital of ¥2.9 billion (RM108.0 million) has been repaid.

Madrid Properties

Riding on the recovery in Madrid real estate and resurgence of Spanish economic activities, the Group had entered into a 50:50 joint venture with Grosvenor Europe with a total commitment of €100 million (€50 million each) to invest in real estate in the Spanish capital. The first investment in Jorge Juan is currently under construction with expected completion by 2020. In addition to the maiden acquisition of Jorge Juan in February 2017, the joint venture has added a further 4 projects to its portfolio. The Group plans to redevelop these into 5 residential-led projects with a total expected GDV of €162.2 million (approximately RM771.3 million) as summarised in the table below:
Projects  Type of Property  Location  Plans 
Jorge Juan 
Freehold residential land 
Salamanca district 
Under construction to build 7 residential apartments with parking facilities. 
Santa Engracia 
Freehold residential building 
Chamberi district 
To refurbish 18 residential apartments and 1 retail unit. 
Modesto Lafuente 
Freehold office/retail building 
Chamberi district 
To refurbish 13 apartments with parking facilities. 
Freehold office/ warehouse building 
Salamanca district 
Development of residential apartments with parking facilities. 
Garcia de Paredes 
On-going residential development site 
Chamberi district 
To redevelop into 15 exclusive apartments and 2 penthouses with parking facilities. 

Amprop Spain Investments 
Malaysia Properties

During the financial year in Sibujaya, the Group had completed Coral Avenue Phase 2 and 4, consisting of 97 units of 2-storey residential terrace house and Sapphire East, 28 3-storey commercial units which won the Commendation Award from SHEDA. These were well-received with take up rate of more than 70% for residential units and 50% for commercial units. The Group also launched Coral Avenue Phase 5 and 6, consisting of 88 units of 2-storey residential terrace house with a GDV of RM34.8 million. Sales in Sibujaya achieved during the financial year were RM37.6 million (2017: RM43.9 million). Despite the overall softer market sentiments, we will continue to market and launch various landed properties which would continue to appeal to the residents whether they are first time house owners or upgraders.

Renewable Energy and Contracting

Renewable Energy Division saw a 30.8% rise in energy generation to 48.0GWh from 36.7GWh in preceding year, making up 14.1% (2017: 8.7%) of our total revenue. This was contributed by both hydro and solar power plants with total installed capacity of 16.25MW. Our Sungai Perting mini hydro power plant generated higher output of 36.3GWh, a 46.4% increase compared to previous year arising from a higher recorded precipitation and truly recovered from the effects of El Nino in the previous year. Our Gemas solar farm generated a total clean energy of 11.7GWh. Meanwhile, our 20MW hydro power plant in Sungai Liang, Pahang is expected to achieve its commercial operation date in 3rd quarter of 2018 with an average generation of approximately 84GWh per annum.

10MW Sg Liang turbines
10 MW Sungai Liang Upper Scheme’s turbines and generators.
Renewable Energy Generation Chart   
The Group’s Contracting Division remains focused on mechanical engineering works on Heating, Ventilation and Air-Conditioning. During the financial year, several projects were completed such as Shah Alam Hospital and KL Gateway which contributed to its higher PAT before minority interest of RM4.9 million (2017: RM3.3 million). The remaining unbilled book orders stood at RM83.0 million.
10MW Sg Liang Lower weir
10MW Sungai Liang Lower Scheme’s weir. 


Moving forward, the Group will look to the remaining unsold residential units in London and Tokyo to contribute to its results in the coming financial year ending 2019. This will be supported by sales at Malaysia Properties Division and from the Renewable Energy and Contracting Division, in particular the commissioning of our 20MW hydro power plant in Sungai Liang. Meanwhile, the Group is looking to complete its first acquisition in Hong Kong and Shanghai and will look to evaluate any opportunities to increase its East Asia portfolio. The additional capital raised from the rights issue of RCPS B will immediately save the Group’s interest and place it in a financially stronger position to increase the breadth of its projects. While we do not expect the coming financial year to match the financial results of 31 March 2018, the Group will ensure that we put in motion efforts to realise the maximum potential of our investments made thus far. 

The Group risks include the acceptance of the products that are launched, the political and tax developments in the country of our investments, the volatility of both our local and investment currencies as well as maintaining adequate capital and funding for our committed investments.

As 57.8% of our total assets is based in global cities for example London, Madrid, Tokyo and Hong Kong, there could be vast differences and underlying diversity between each city’s property market. For this, we work closely with some of the most reputable property developers and managers who have many years of international experience and local property knowledge. We share the same investment philosophy of prudence in product planning and project launches to ensure market relevance and strong take-ups. It is also this cost-effective partnership model that the Group relies on to expand into multiple key cities.

Foreign currency volatility may affect our income statement when profits are translated into Ringgit Malaysia (“RM”) but the Group takes a longer term view of its investment destination and the capital and profits are normally kept in the investment currency for further investments. Where possible, foreign currency borrowings from financial institutions are obtained to act as a natural hedge or hedges are entered into to manage some of this volatility in line with certain predetermined guidelines.

To fund our commitments, we use a combination of borrowings and cash, both in RM and foreign currencies. Any further depreciation of RM or other currencies against the chosen investment currency may potentially hinder us from meeting our capital commitments to the joint ventures. The proceeds from our recently completed rights issue will put the Group in a better capital position by reducing short term borrowings and reducing any tenor mismatch with our longer term assets.
Burlington Gate penthouse reception room with views over iconic London landmarks. 

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