Radicare bidding for RM10m worth of jobs in UAE
KUALA LUMPUR: Integrated facilities management services provider Radicare (M) Sdn Bhd is bidding for RM10 million worth of projects in the United Arab Emirates involving healthcare and commercial properties, said its chief executive officer Mohamed Rafique Merican.
He said the result of its bids for an initial three projects there would be known by the end of this month and if it succeeded, the company would start work by the middle of this year.
Rafique said concessions for facilities management in the Middle East were typically for three years but were subject to annual review.
“We are also looking at having a local partner in the Middle East as it is a requirement there. As for setting up a linen and laundry service facility, it could cost anything from RM15 million,” he said.
From left: Mohamed Rafique, Radicare chairman Datuk Abdul Latiff Abdullah, MIDF chairman Tan Sri Mahmood Taib and MIDF Investment CEO Datuk Megat Hisham Megat Mahmud at the signing ceremony for commercial papers/medium term notes facilities yesterday.
Apart from the Middle East region, Rafique said the company was also vying for projects in Brunei and Thailand, as well as being in advanced stages of talks with a real estate investment trust in the Klang Valley.
“We want to look beyond healthcare services, as there is increasing awareness among commercial building owners about facilities management in general and of Radicare in particular.
“There is plenty of room for expansion in the facilities management industry in Malaysia, and as part of our plan, we want to approach property owners with significant portfolio,” he said.
He was speaking to reporters here yesterday after Radicare signed a RM100 million commercial papers/medium term notes facility (MTN) and RM50 million MTN yesterday.
MIDF Amanah Investment Bank Bhd and MIMB Investment Bank Bhd are the lead and co-arranger for the facility, respectively.
The facility will be used for Radicare’s capital expenditure plans including for the capacity expansion of its laundry plant at Teluk Panglima Garang, Selangor and new centralised laundry plant in Gebeng, Pahang.
Rafique said the two facilities, developed at a total cost of RM33 million, would be ready by July and increase its current capacity of 47 tonnes of laundry per day to 77 tonnes.
Radicare currently provides non-clinical support services to major government hospitals in Kuala Lumpur, Putrajaya, Selangor, Kelantan, Terengganu and Pahang, said Mohamed Rafique, adding that it was planning to expand its services as part of its five-year growth plan.
Mohamed Rafique said the company recorded a 16% revenue growth to RM360 million in 2007, and was projecting a 20% to 25% revenue growth this year based on new contracts and additions to existing jobs. “The profit margin for facilities management in Malaysia, however, is still single digit,” he said.
Meanwhile, to a question whether Radicare would be listed, Mohamed Rafique told The Edge that the company did not rule out the possibility in the future. “We want to first consolidate our business and be on firmer footing but it is something we will explore,” he said.
Taken from The Edge Financial Daily 11/04/2008
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