PROPERTY developer PJ Development Holdings Bhd said it plans to use profits earned from its 27.4 per cent interest in Australia's Equity & Property Investment Corp Ltd (Epic) for a redevelopment project in Sydney.

Part of the RM110 million profit will also be used to return cash to its shareholders, said group managing director Wong Ah Chiew.

The RM110 million gain is through the recent disposal of hotel businesses by Epic for A$135 million (about RM400 million) against the cost of investment of only A$33 million (RM97.68 million).

Epic, which is involved in hotel ownership, stockbroking services and property and equity investment, was originally listed on the Australian Stock Exchange, but was delisted in 2002.

Wong's brother Ong Leong Huat @ Wong Joo Hwa, who is the managing director and major shareholder of investment bank OSK Holdings Bhd, is believed to have a 28 per cent direct stake in Epic, but this is according to a filing by Epic in 2002.

"We have a lot of cash now from the disposal of the hotel businesses by Epic and plan to put it to good use by rewarding our shareholder s," Wong told Business Times in a recent interview.

Even after the disposal of the hotel businesses, PJ Development still has interest in Australia's property sector through its properties in St Leonards, Sydney, which was acquired for A$15 million (RM44.4 million) from the open market two years ago.

"We own several buildings there which are currently leased as we await approval from the relevant authorities for a redevelopment plan.

"We are planning to convert the buildings into high-end and highrise apartments offering over 100 units for sale," Wong said. However, the plan is unlikely to kick off this year due to weak market sentiments.

"The (Australian property) market is softening, so we want to hold on a bit longer before we launch the project. But we are aiming for a launch next year," he added.

Wong said the market rate for such properties in St Leonards currently ranges from A$800 (RM2.37 million) per sq ft to A$900 (RM2.66 million) per sq ft, but this figure is expected to exceed A$1,000 (RM2.96 million) next year when the property market stabilises.

In the meantime, PJ Development is looking at new investments in other parts of Australia and neighbouring countries.