June 23, 2020
New Straits Times : Amprop to focus on selling overseas properties
Amprop to focus on selling overseas properties

By Kathy B
Amcorp Properties Bhd is positioning itself as an established property developer and investor overseas, by forging successful partnerships with sound and reputable investors and developers. Image source from

Amcorp Properties Bhd (Amprop) will focus on securing sales of its properties in Spain, London, and Tokyo instead of new launches as uncertainty on the global economy remain.

The group, which has several successful projects in its portfolio on the home front expects the coming financial year (FY2021) to be challenging due to the weak sentiments arising from the Covid-19 pandemic.

"Amprop will continue to be vigilant on its capital expenditure and cash conservation measures in its business. While lockdowns are slowly being lifted, uncertainty on the global economy remains," it said.

Amprop said the extent of the impacts for Covid-19 to the group's operations will depend on future developments including the severity of the outbreak, the actions required to contain it, and the duration required for the economy to recover.

"This could adversely affect the group's operations, cash flows, and financial position for the coming financial year although the impact cannot be reasonably estimated at the date of this report," it said in a filing with Bursa Malaysia.

Amprop recorded revenue of RM36.6 million for the fourth quarter ended March 31, 2020, as versus to RM49.4 million in the preceding year corresponding quarter, down by 26 per cent, partly due to lower contribution from its property projects in Malaysia.

Local properties contributed RM7 million, it said.

Revenue was mainly derived from the sale of properties in Sibu Jaya, totalling RM4.7 million coupled with rental income from investment properties amounting to RM2.3 million.

Sibu Jaya is a self-contained mixed development township located close to Sibu Airport, in Sarawak. It is a joint development between Amprop and Sarawak government agency, the Housing Development Corporation.

Spanning across a massive 560 hectares (ha), some of the properties being developed include residential homes, shop houses, industrial buildings, and public amenities such as schools, a 9.3ha central green lung, and a 16ha green belt stretching up to 3.6 km within the residential components.

Net loss for the quarter amounting to RM9.15 million, as versus to a net profit of RM28.9 million in the preceding year corresponding quarter, was because of lower contribution from local and overseas property projects and its contracting division.

For the 12 months, Amprop posted higher revenue of RM179.5 million as versus to RM147.1 million in the preceding financial year ended March 31, 2019.

Local property projects as well as it's renewable energy and contracting divisions contributed RM73.5 million and RM106 million respectively.

The revenue was higher by 22 per cent mainly due to land sale in Sepang, and higher contribution from the renewable energy and contracting division.

Net profit was lower by RM42.7 million as in the previous financial year, there was recognition of deferred tax assets on Sungai Liang mini-hydro plant of RM25.7 million coupled with a higher unit of sales recognised from the group's Burlington Gate project in Mayfair, London.

Kilmuir House, London. Image source from

International ventures

Amprop is positioning itself as an established property developer and investor overseas, by forging successful partnerships with sound and reputable investors and developers.

The group forayed into London in 2009 with the acquisition of interests in two premier office buildings in Paddington known as 40/50 Eastbourne Terrace, which it later sold at a profit of about RM66 million.

Current investments that are all located in central London include Burlington Gate, Holland Park Villa in Campden Hill, Bankside Yards in Southwark, and Kilmuir House in Belgravia.

Burlington Gate is an exclusive development of 42 luxury apartments and penthouses. It has a gross development value (GDV) of £270 million.

Holland Park Villa is located in the vicinity of the prime High Street Kensington district in Central London, renowned for its upmarket shopping zone.

Amprop has entered into a joint venture agreement with reputable partners Hotel Properties Ltd, UK based developers Grosvenor and Native Land, to develop the exclusive residential project estimated to be RM2.83 billion.

The development comprises 72 units of one to six-bed private apartments with an enormous double-height entrance featuring extensive landscape and courtyard gardens.

Bankside Yards comprises Sampson House and Ludgate House, which are two properties adjacent to Tate Modern, located in the heart of London's South Bank.

Amprop is jointly developing it with UK-based developer Native Land, and Singapore-based developers Hotel Properties Ltd and Temasek Holdings Ltd.

They are planning six buildings between 14 to 48 storeys high. Besides offices, retail shops, and leisure facilities, the property will also have 668 residential apartments.

As for its Kilmuir House, Amprop is planning a high-end residential development comprising 49 units of two-bedroom apartments arranged over the ground and eight upper storeys.

Amcorp is confident that Kilmuir House will contribute positively towards the future earnings and growth of the group.

The group had formed a 50:50 joint venture with UK-based Clan Kilmuir to acquire Kilmuir House for £45 million.

La esquina de General Arrando in Madrid, Spain. Image source from

Entry into Japan and Spain

Amprop's desire to undertake niche developments in high growth international markets led to the group to invest in Japan and Spain.

In Japan, the group entered the Japanese real estate in 2015 through its maiden project, Forest Nanpeidai, followed by Court Annex Roppongi in Minato-ku.

The group, in a co-investment partnership with Gosvenor Asia Pacific Ltd and Hong Kong's Nan Fung, further acquired 14 office and three retail units (totalling about 39,000 sq ft), comprising about eight per cent of net rentable area in a 44-storey residential cum commercial tower in Nishi-Shinjuku, Tokyo known as Concieria Tower's West.

With the acquisition, Amprop's investment in Japanese real estate is close to ¥2.9 billion (RM 102.2 million), this is according to its website.

In Spain, the group has a partnership to invest in a portfolio of real estate development and value-added projects in Madrid.

The group's maiden Spanish venture is Calle De Jorge Juan. This was followed by Modesto Lafuente and La Esquina de General Arrando.

La Esquina de General Arrando is a six storey corner building measuring 19,375 sq ft with a listed façade.

It will be refurbished into 18 stylish apartments including two unique terraced penthouses, with common facilities, coupled with a ground floor commercial space.

Modesto Lafuente via a partnership with Grosvenor Europe is an office building, located in the Chamberi district in Madrid.

Amprop intends to convert the non-listed building into a high-end residential and commercial space housing 13 exclusive apartments, a modern-looking façade together with an underground parking facility.
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