Malaysian construction firm Nestcon Bhd is making strategic moves to broaden its business horizons with plans to enter the property development sector. The company announced a joint venture to develop a mixed-use project in Petaling Jaya Selatan, featuring commercial spaces and nearly 500 serviced apartments. With an estimated gross development value of RM211.7 million, this initiative marks a significant shift for the firm beyond its core construction and renewable energy operations.
The partnership with Kumpulan Wilayah Sejati Sdn Bhd will see Nestcon handling construction, financing, and sales while the landowner receives RM10 million as part of the agreement. Regulatory approvals are pending, but construction is slated to begin in late 2025, with completion expected within five years. Nestcon emphasized that this project will diversify its revenue streams, potentially contributing at least 25% to future net profits and assets.
In a separate but related move, the company is acquiring three office units in Puchong’s Nest 2 Residences for RM15.1 million to establish a new corporate headquarters. The purchase, classified as a related-party transaction due to shared major shareholders, aims to support business expansion and operational growth. Nestcon plans to fund both ventures through a mix of internal reserves and bank loans.
Financial statements reveal the company had RM82.74 million in cash reserves against RM203.33 million in borrowings as of December 2024. These strategic investments underscore Nestcon’s ambition to strengthen its market position while diversifying its portfolio in Malaysia’s competitive real estate sector.