Propel Global targets December 2026 launch for RM64m Riverpoint shoplots in Kuantan
Propel Global Bhd plans to launch Riverpoint, its maiden commercial development in Kuantan, in December 2026, with a gross development value of RM64 million. The project comprises 31 three-storey freehold shoplots along Jalan Tanah Putih, and the group is seeking shareholders' approval to diversify
PETALING JAYA (Oct 20): Propel Global Bhd (PGB) is targeting a December 2026 launch for Riverpoint, its maiden commercial property development in Kuantan, Pahang, with an estimated gross development value (GDV) of RM64 million.
The group, which operates oil and gas (O&G), technical services, and information and communications technology (ICT) businesses, is seeking shareholders' approval to diversify into property development. It intends to continue its existing operations alongside the new business.
In additional details filed with Bursa Malaysia on Oct 19, PGB said Riverpoint will comprise 31 three-storey freehold shoplots along Jalan Tanah Putih, about 4.2km southwest of Kuantan town. The premises are intended for retail, food and beverage, office and other commercial uses.
The group estimates gross development costs of RM53 million and gross development profit of RM11 million. Completion is targeted for January 2028, with an estimated development period of about 13 months.
Riverpoint occupies two adjoining parcels measuring approximately 20,639 sq m, or 222,156 sq ft. Wholly owned subsidiary Propel Global Development Sdn Bhd acquired the land from Goldhill Deluxe Sdn Bhd for RM14.7 million cash, completing the purchase on Oct 17, 2023.
The project obtained planning permission on Nov 19, 2024, and building plan approval on July 23, 2025. Project planning and pre-launch preparations are ongoing, with development costs to be funded through internally generated funds and/or bank borrowings.
PGB said in its Oct 14 announcement that property development was anticipated to contribute more than 25% of the group's future net profits. It will seek shareholders' approval for the proposed diversification at an extraordinary general meeting (EGM) to be convened.
The group said the move would provide an additional source of revenue and earnings while complementing its technical services business, which covers engineering, construction, project management and maintenance for industrial, commercial and residential developments. Following Riverpoint, PGB intends to evaluate further property development opportunities, subject to market conditions and the availability of suitable development land.
The proposal comes after the group recorded an unaudited loss after tax of RM27.21 million for the financial year ended June 30, 2026 (FY2026), compared with an audited loss after tax of RM24.18 million a year earlier. Revenue fell to RM80.38 million from RM111.06 million. O&G was its largest revenue contributor in FY2026, generating RM63.32 million.
The property development business is led by Propel Global Development general manager Chia Hiap Wei, who joined the group in 2023 and has more than 20 years of property development and project management experience in Malaysia and Australia.
PGB acknowledged its limited track record in property development and the challenges of competing with established developers with larger land banks and greater financial resources. Other risks include development cost fluctuations, project delays and the availability of financing.
The proposed diversification is not expected to have an immediate material effect on group earnings or earnings per share. However, the board expects the property business to contribute positively once sales commence and revenue is progressively recognised based on the stage of completion.
Barring unforeseen circumstances, the diversification will take effect immediately upon shareholders' approval at the EGM, subject to any other approvals or consents required from relevant authorities or parties.
