Felcra Bhd, through its subsidiary, Felcra Properties Sdn Bhd, expects the property sector to contribute 10 to 20 per cent of its income in the next five years.

Chairman Datuk Tajuddin Abdul Rahman said Felcra Properties will be the developer of properties belonging to Felcra, worth RM100 million, throughout the country.

"Among the property developments to be undertaken by Felcra Properties will be a mixed development project, Menara FELCRA in Jalan Semarak, Kuala Lumpur, with a gross development value of RM1 billion," he told reporters here Monday after announcing the dividends for Felcra participants and the launch of Menara FELCRA.

Tajuddin said the ground breaking ceremony for Menara FELCRA was expected to be held end of this year while the completion of the building will be in three years time.

"We have already received the approval of the Ministry of Rural and Regional Development for the project, and are awaiting the greenlight from the Finance Ministry," he added.

Apart from the mixed development, he said Felcra would be also building homes for the second generation Felcra settlers.

Tajuddin said the housing problem faced by the second generation was critical and that it was the responsibility of Felcra to ease the problem by building affordable and comfortable homes.

The pilot housing project for the second generation, to be developed in Perak on an area covering 400 acres, will take off next month. A total of 1,500 homes will be built.

"We will help to make a success of this project with an initial funding assistance of RM42 million through Felcra Properties which will also be the developer of the housing project, while we help this second generation get housing loans from the banks," he said. - Bernama