Tan and Yeung

PETALING JAYA: SMD Development Sdn Bhd (SMD), which has its development footprint in Kundang, Rawang, has more to offer with upcoming projects, according to its CEO Datuk Jeffery Tan.

The developer currently owns 80 acres of land with plans for projects worth an estimated gross development value (GDV) of close to RM1 billion which will keep it busy for the next 10 years, said Tan.

The first project in the pipeline will be the SMD Kundang Industrial Park that has a GDV of about RM80 million. The project will be launched end-September.

“The 9.2-acre freehold development comprises 20 units of semi-dee factories and one detached factory unit. Each factory unit consists of a 2-storey office with a single storey warehouse,” he told
TheEdgeProperty.com.

The land sizes of the units are from 12,007 sq ft to 23,209 sq ft with built-up sizes of between 7,519 sq ft and 9,849 sq ft. Their selling prices start from RM3.29 million or an average RM400 psf.

Tan added that the construction will be divided into two phases and is expected to be completed in 2018.

SMD’s maiden development was the Kundang Jaya Industrial Park which featured 10 units of semi-dee factories and four detached factories.

Launched in 2011, Tan noted that most of its buyers were small and medium-sized enterprises which were expanding or upgrading to bigger factory units.

“The industrial units with a built-up size of about 5,600 sq ft and land size of 10,000 sq ft were selling for RM1.5 million back in 2012. The same units were selling at RM2.8 million in the sub-sale market recently,” Tan said.

Prices have risen significantly over the past five years, but have slowed down lately.

“The industrial unit that the buyer purchased in 2011 had easily achieved double-digit growth in 2014. Although the capital appreciation has slowed down, in general, it is still able to fetch a growth rate of between 5% and 8%,” he offered.

SMD Kundang Industrial Park

Located in the northern parts of the Klang Valley next to Rawang, Kundang is one of the few areas in the Klang Valley which has been designated as an industrial zone. “It is gaining growth momentum,” said Tan.

He noted that with good accessibility through various highways — such as the KL-Kuala Selangor Expressway (LATAR Expressway), the North-South Expressway and the Guthrie Corridor Expressway, Kundang has the potential to grow further.

“Developers and business owners are moving out from the more established city areas in the Klang Valley to the northern parts such as Kundang and Rawang.

“Land prices in Kundang have increased over the years. Industrial land with ready infrastructure which was selling at RM20 psf in 2010 is now selling at around RM80 to RM90 psf,” he added.

Tapping on the growth momentum of Northern Klang Valley, SMD plans to unveil a mixed-use development, Serai Murni, in Kundang in the third quarter of next year.

According to SMD sales manager Gary Yeung, the 10.35-acre development comprises 40 units of 3- and 4-storey shoplots, 46 units of double storey terraced houses and 12 units of townhouses.

The built-ups of the shoplots will range between 4,200 sq ft and 8,400 sq ft while the terraced houses will range between 2,300 sq ft and 2,500 sq ft. The townhouses will have a built-up of 1,000 sq ft.

“The low-density project will be a guarded community and will be located opposite a major township development by a local developer. Kundang will see major changes within the next five to eight years with this township development,” Yeung added.

Apart from these two projects, SMD is also planning its flagship development in Bandar Baru Kundang which will have a tentative GDV of RM500 million.

“This 36-acre project site was previously part of an abandoned project which was left deserted 10 years ago. We will re-work the masterplan for the land into a modern township,” said Tan.

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This story first appeared in TheEdgeProperty.com pullout on July 29, 2016, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.

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