Propel Global seeks shareholder backing for move into property
Its first project, Riverpoint in Kuantan, has an estimated gross development value of RM64.0 million and is scheduled to launch in December 2026.
Propel Global Bhd plans to enter property development as it tries to return to profit following losses in two successive financial years. In a filing to the exchange, the group said the diversification proposal would be put to shareholders at an extraordinary general meeting.
The new business will begin with Riverpoint, a commercial development in Kuantan, Pahang. Its planned 31 freehold shop lots, each three storeys high, are intended to accommodate shops, food and beverage outlets, and offices. Launch is scheduled for December 2026, while January 2028 is the targeted completion date.
The company forecasts RM64.0 million in gross development value and RM53.0 million in gross development costs, with expected gross development profit of RM11.0 million. It will use bank borrowing alongside its own funds to finance the project.
Propel Global Development Sdn Bhd purchased the adjoining pair of freehold plots from Goldhill Deluxe Sdn Bhd for RM14.7 million in cash in October 2023. The project received planning permission in November 2024 and approval for its building plans in July 2025.
The group's FY25 revenue was RM111.5 million, with a RM24.2 million net loss. Unaudited FY26 figures showed revenue of RM80.38 million and a net loss of RM27.21 million. Its current businesses cover technical services, ICT, and oil and gas.
Propel Global said the property business would broaden its income sources and make use of its engineering, construction and project management experience. It also flagged limited experience as a developer, potential delays, changes in material and labour costs, and increased leverage as risks. No new ordinary shares would be issued under the proposal.
