From being a company known as a home appliance provider, Fiamma Holdings Bhd is posturing to make a name for itself as a housing developer.

Recently, the company entered into agreements to buy two development companies in Kota Tinggi, Johor, for a total of RM16.58 million cash.

One is Uniphoenix Jaya Sdn Bhd, which owns 7.7 acres of freehold land and 34 completed shophouses in Taman Kota Jaya, for which it will pay RM12.81 million.

The other is Oaksvilla Sdn Bhd, which owns 11.3 acres of freehold land next to Taman Kota Jaya, 85.7 acres of leasehold land just outside Kota Tinggi and 16 units of singleand double-storey terrace houses, which will exchange hands for RM3.77 million.

In an announcement to Bursa Malaysia, Fiamma said the acquisitions represent an opportunity for the group to diversify into the development business "with immediate effect".

It said the parcels of land are strategically located within an established housing scheme in a matured location in Kota Tinggi town, which sits on the border of South Johor's Iskandar Development Region.

The company sees strong demand for residential and neighbourhood commercial properties in the area.

Fiamma plans to build two-storey terraces and shoplots on the 7.7-acre Uniphoenix Jaya parcel with an estimated gross development value (GDV) of RM37.1 million. From the amount, it expects to earn a profit of RM8.9 million when the project is completed by June 2011.

On the 11.3-acre Oaksvilla plot, it will develop terraces as well as low- and medium- cost apartments with a total GDV of RM45.6 million, from which a RM6.5 million profit is envisaged.

The 85.7-acre leasehold plot will accommodate a mix of terraces, flats and shoplots.

Over the past year, Fiamma has been on a real estate acquisition spree, purchasing a 1.4-acre site opposite the Petronas Twin Towers in Kuala Lumpur and near Menara Public Bank in April for RM25.02 million or RM407psf.

Later in August, it bought the site once used as a Cycle & Carriage Bintang showroom off Jalan Raja Laut in KL for RM16.5 million.

Since starting from a shophouse in Johor Baru with a staff of five in 1979, Fiamma has built up appliance labels such as Elba and Faber, as well as Maytag, Braun, Tuscani, Ebac and Rubine.