RM800m worth of projects lined up in 2H — I-Bhd

KUALA LUMPUR (June 18): I-Bhd, which is likely to see contribution from its property development segment impacted this year as the property developer did not have any launches in 2018, has lined up property launches worth RM800 million in gross development value (GDV) over the next six months.

The group is also planning to upgrade and relocate some of its theme park rides and attractions at i-City, Selangor, in order to attract new groups of visitors, as well as to free up land for property development. 

In a statement today, the group said there will still be considerable property investments in the coming five years, as the target is to establish a RM1 billion investment property portfolio.

"Part of this programme is the second convention centre, as well as the DoubleTree by Hilton hotel, both of which are currently under construction," it added.

As at end-December 2018, I-Bhd’s property investment portfolio stood at RM641.1 million, according to its 2018 annual report.

I-Bhd said its strategy is to build up three core segments, namely property development, investment property and leisure, so that the recurring income from the latter two segments would contribute equally to the group's bottom line, as that of the property development segment. 

As at end-2018, about 70% of the group's shareholders' funds have been invested in these two segments.

“However, many of the properties in these two segments were only completed less than a year ago, so the contribution to the group's performance for the past few years had come mainly from the property development segment.

“All this is set to change in the coming five years, as we build up the tenancy of these properties. A good example of this is the RM850 million Central i-City that was officially opened by Sultan of Selangor last Saturday,” it added.

At 2.37pm, I-Bhd shares were unchanged at 40 sen, with 23,000 shares done, bringing a market capitalisation of RM405.69 million.

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