F&N Thinking Of Entering Niche Property Market
Now beverage bottler F&N wants to become a niche property developer. The property arm of the company which owns tracts of prime land in several states including the Klang Valley, prefer the niche market as compared to being a mass market developer.
Their first preference is to unlock the value of their land in Petaling Jaya and Sabah.
According to a report:
“F&N… which has a total of 40.5 ha of factory land in seven states is still a food and beverage company, as the size of the landbank is too small for it to be considered a property developer.
Aside from the development of the 8.1 ha ZON.e along Jalan Sungai Besi in Kuala Lumpur, Cheah said the company has two other commercial development projects in the pipeline in the Klang Valley and Johor Baru with a total gross development value of RM300 million.
However, unlike its other development projects, which involves the unlocking its landbank, F&N properties division acquired the land in Johor Baru for development.“
More and more companies are diversifying from their core business activities to enter the seemingly attractive and lucrative real estate business. But without a doubt, a company like F&N have financial strength and landbank to do it, and lack of experience will not be a big issue here. We think going for the niche market is the way forward, but at this stage, we will have to see their masterplan when it is ready.
Watch this space for more news.
