I&P to launch RM381 mil worth of homes before year end

SHAH ALAM: I&P Group Sdn Bhd chief executive officer Datuk Jamaludin Osman aims to launch two more projects worth RM381 million in gross development value (GDV) before the end of this year.

“Given current uncertain market conditions, we are studying the market closely and carefully,” he said, adding that at least one launch will be taking place before 2016 ends.

“We are planning to have more launches next year, especially new products within our existing townships such as Alam Impian and Bandar Kinrara,” Jamaludin told TheEdgeProperty.com.

One of the projects targeted for launch soon comprises terraced houses in Alam Impian, Shah Alam.

“We are aiming to launch a new housing type in the Alam Impian township. The 127 double-storey terraced houses have a total GDV of RM89 million. It has smaller built-up sizes of 22ft by 75ft, so the selling price will be slightly cheaper at between RM600,000 and RM700,000. Previously, we offered bigger built-ups with selling prices at between RM800,000  and RM900,000,” he said.

I&P Group is also looking to launch a new serviced apartment project called 10 Kinrara at its Bandar Kinrara township in Puchong.

It is a 2-tower mid-range project featuring 380 units and 39 strata shop offices. The project has a GDV of RM292 million.

“We are now open for registration and once we get the approval, we will open one tower for sale first. We hope we will get the approval soon so we can launch this before the end of this year,” said Jamaludin.

On the current market slowdown, he believes offering products that the market wants is the key to a developer’s sustainability.

“As a developer, we see that demand [of housing] has not gone down even when the market is down and financing is difficult. While we [developer] cannot do anything on end-financing, we can provide products that the masses can afford and fulfil their needs.

“Landed homes have always been the hot property type but most buyers cannot afford these. So we are planning to build smaller houses that are just right for small families that need no luxury living space to fulfil their needs and bring down the price,” he said.

Moving forward, landed properties will still be the focus of I&P, said Jamaludin.

“We have more than 4,500 acres of land in the Klang Valley and Johor Bahru. We also have many existing townships that have yet to be fully developed such as Alam Impian that we launched 10 years ago. It is a 1,235-acre township in Shah Alam and thus far only 40% of it has been developed. We can afford to build more landed homes in mature townships in the future. This is our niche at this point in time,” he said.

Besides Bandar Kinrara and Alam Impian, I&P Group is also the developer of Temasya Glenmarie, Alam Damai, Bandar Baru Seri Petaling, Alam Sari, Bukit Damansara in Klang Valley, as well as Taman Perling, Taman Pelangi Indah and Taman Rinting in Johor Bahru.

Jamaludin reckoned I&P Group has enough landbank that could keep the group busy for a “very long time”. However, it remains open to any potential land acquisition opportunities.

“We will not push away a good deal if it comes to our doorstep, but we are not actively looking for it. We will remain focused on Klang Valley and Johor Bahru,” he said.

I&P Group recently bought 327.55ha of land in Semenyih for RM428.8 million from Sime Darby Bhd.

“Yes, the initial plan for this piece of land is to develop another township. However, nothing is concrete yet so I don’t want to share too much about the plan,” Jamaludin said.

This story first appeared in TheEdgeProperty.com pullout on Oct 28, 2016, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.