From garment manufacturing into property development
Malaysian Business, Oct 1, 2008 by P.F. Khong
WHEN DNP Holdings Bhd (previously Dragon and Phoenix Bhd) began to tailor its name as a respectable garment manufacturer in the 1960s, it was hard to imagine where once needle, thread and fabric met would eventually emerge a brick and mortar business in the literal sense.
Listed on the Main Board of Bursa Malaysia in 1979, DNP was originally the garment-manufacturing arm of the Wing Tai Group of Singapore, which itself started out as a garment manufacturer in Hong Kong in the 1950s.
A natural progression led to its venture into retailing and today, DNP has a portfolio of 51 specialty stores throughout the country carrying international fashion brands like Karen Millen, Dorothy Perkins, Topshop, Miss Selfridge, Canali and Topman.
But, at the same time, having weathered changes in the economic climate and business cycles for almost two decades, DNP decided to follow in the footsteps of its parent, Wing Tai Holdings Ltd, to broaden its earnings base by diversifying into property development in the 1980s.
Wing Tai had by then become a major property developer in Singapore.
`The major shareholders, Wing Tai, have successfully developed property projects in Singapore and DNP decided to leverage on their expertise,’ DNP’s General Manager (Treasury & Accounts) Lee Kong Beng tells Malaysian Business.
Its foray into property development began in 1981 with the purchase of a 40-hectare plot of land in mainland Seberang Perai, which it later transformed into what is known today as Taman Nagasari, a mixed development comprising residential, commercial and industrial properties.
Realising the potential of property development business, the Penang- based DNP expanded its landbank by acquiring land in its home state as well as in Kuala Lumpur.
In the late 1980s, DNP invested its funds in several plots of prime land in the city centre of Kuala Lumpur and at the same time drew up plans for a condominium in Penang island, which took shape in 1991 as No. 72 Scotland Road.
Bountiful investments
Meanwhile, its landbank in Kuala Lumpur continued to grow in value. Due to its strategic location, which was a stone’s throw away from the Petronas Twin Towers in the vicinity of Kuala Lumpur City Centre (KLCC), DNP was able to reap handsome rewards from its investments in these assets.
Today, DNP is the proud owner of luxury residential apartment No. 8 Ampang Hilir and serviced apartments Lanson Place Ambassador Row in Kuala Lumpur. It is also the developer of The Meritz, a 110-unit luxury condominium located near KLCC, and residential project Sering Ukay at Ulu Klang, Selangor.
Plans are also afoot to launch new projects in the vicinity of KLCC and at Bukit Ceylon in the next six to 12 months, according to Lee.
Closer to home, DNP continued to focus on residential development projects in Bukit Minyak and Alma, Bukit Mertajam, where homes of various designs and sizes were offered to house buyers in phases since the late 1990s.
New projects
Over the years, new projects like Taman Seri Impian and BM Utama in Bukit Mertajam were also launched inphases, offering buyers a combination of unique designs and quality finishes.
The 18.4-ha Taman Seri Impian residential project in Alma, Bukit Mertajam, features 500 homes of various designs and is set amidst a tropical enclave with a 1.6-ha landscaped park, a jogging track, outdoor fitness stations and children’s playground.
Just a stone’s throw away is the BM Utama project. Spanning 22.4 ha of land, BM Utama offers more than 500 exclusive garden homes in four different designs aimed at creating a modern living environment and surrounded by landscaped parks.
Despite escalating construction costs amid a challenging economic environment, DNP remains confident that its steadfast commitment to high quality homes and well-thought-out designs will appeal to property purchasers.
`We have always focused a lot of attention on quality and value and we remain dedicated to achieving a consistently high standard of quality in all DNP Land projects,’ says K.C. Tan, DNP’s General Manager of Property Division (Northern Region).
`We have to have very good value innovation,’ Tan explains, stressing that designs should balance aesthetics and functions and must be environmentally friendly. `Our priority is to create quality living spaces that is not only stylish and comfortable, it has to be practical and functional with careful consideration given to the natural environment and the community as a whole.’
According to Tan, DNP has much in store for housebuyers, with the launch of new phases of Taman Seri Impian and BM Utama slated for the coming months.
To date, 70% of the properties for sale at BM Utama has been taken up while 95% of the third phase of Taman Seri Impian have been sold
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