More upmarket projects worth RM500mil from IOI

By THE STAR

PETALING JAYA: IOI Properties Bhd plans to unveil a number of upmarket projects with a total gross development value of more than RM500mil in the next one year.

Director Datuk David Tan said the launches would include 36 bungalows and five signature office blocks in Bandar Puteri Puchong, 84 super homes in IOI Resort and 150 high-end condominiums in Jalan Ampang.

Datuk David Tan

“We are keen to undertake more upmarket and signature projects in exclusive locations to widen our earnings base from township products,” he told StarBiz.

A high-end condominium project in Singapore’s Sentosa Cove is also in the pipeline.

The company’s condominium project on 3.76 acres opposite the British Embassy along Jalan Ampang to be launched by the year-end marks its first foray in the Kuala Lumpur residential market.

Tan said the move into hot residential addresses was also to take advantage of the expected growing demand following the relaxation of Foreign Investment Committee guidelines for foreign buyers and the exemption of real property gains tax.

In IOI Resort, Putrajaya, its Puteri Palma II condominiums have attracted many Korean buyers.

Over the next two to three years, IOI Properties expects to record annual growth of between 15% and 20%. For the last financial year ended June 30, IOI Properties recorded net profit of RM326mil on RM609.2mil in revenue.

Tan said a large portion of the company’s balance landbank was kept under master titles; thus allowing for improvements in planning concepts and products to be developed depending on the changing trends and market conditions.

It has about 900 acres in the Klang Valley and 4,000 acres in Johor. Meanwhile, with the completion of retail and office projects within the next two years, rental income contribution will also increase to 20% a year from 15% currently.

IOI Properties will also launch new housing and commercial properties in its established townships.

Some 60% of the 926-acre Bandar Puteri Puchong has been completed. The new launches will comprise medium and upper medium-cost properties including 144 units of double-storey terrace houses, apartments and shops.

The office blocks in the township’s Puchong Business and Financial Centre will contribute to good rental income for the company. The 930-acre Bandar Puchong Jaya, which is almost 80% completed, will also see new launches of shops, industrial units, 2½-storey terrace houses and semi-detached houses.

The 750,000 sq ft IOI Mall in this township is currently under expansion to add 500,000 sq ft of net lettable space.

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