• The Kuala Lumpur-centric property developer said the RM3.4 billion undertakings consist of RM1.5 billion in 2023's new launches and ongoing projects in Jalan Ampang and Salak South, as well as RM1.9 billion pipeline projects in Mukim Batu and Mukim Petaling, which would be unveiled in 2024.
  • The company had launched two projects in 2023, which were the RM474.4 million GDV R Suites Chancery Residences in Jalan Ampang and RM1 billion GDV Residensi Desa Timur in Salak South.

KUALA LUMPUR (May 31): Newly listed Radium Development Bhd said the company has sustained land bank and projects amounting to RM3.4 billion in gross development value (GDV) in the next five years.

The Kuala Lumpur-centric property developer said the RM3.4 billion undertakings consist of RM1.5 billion in 2023's new launches and ongoing projects in Jalan Ampang and Salak South, as well as RM1.9 billion pipeline projects in Mukim Batu and Mukim Petaling, which would be unveiled in 2024.

The company had launched two projects in 2023, which were the RM474.4 million GDV R Suites Chancery Residences in Jalan Ampang and RM1 billion GDV Residensi Desa Timur in Salak South.

Radium group managing director Datuk Gary Gan Kah Siong said both 2023 projects are “green buildings” with certification for green renewable energy.

During its listing ceremony on Wednesday (May 31), Radium also proposed to distribute a maiden interim dividend of a sen per share, approximately RM35 million dividend payout, in respect of its second quarter ending June 30, 2023 (2QFY2023).

The group has set a dividend policy to distribute no less than 30% of its annual net profit to all shareholders.

Radium raised RM434 million in initial public offering (IPO) proceeds, of which RM171 million was earmarked for acquisition of land bank and/or development expenditure, and RM109.3 million for hotel construction.

A further RM93.9 million was allocated for repayment of bank borrowings, RM39.8 million for working capital, and the balance RM20 million to defray listing expenses.

During the press conference, Gan said that Radium has no plans to venture out of KL within the next five years, though not ruling out the possibility of endeavouring beyond KL.

Radium non-independent non-executive director Datuk Sydney Lim Tau Chin believes that Radium’s construction of a hotel at Jalan Ampang, slated to open in 2026, will generate between RM500,000 and RM700,000 a month, which would garner recurring cash flow for the group.

Gan said the impact of the recent hike in the overnight policy rate to 3% is “manageable” as Radium focuses on affordable houses in the range of RM300,000 to RM600,000 targeted for graduates and young working adults, compared to developers who built luxurious properties.

Radium’s share price opened at 35 sen on its debut on the Main Market of Bursa Malaysia, lower than its IPO price of 50 sen.

Despite the weak opening price, Gan believes the group is strong in its fundamentals as it continues to pay dividends, generate profitability, and will generate capital returns for its investors in the long run.

At 11.07am, the counter was priced at 37.5 sen after hovering between 35 sen and 42 sen. Radium’s stocks remained active with a trading volume of over 173 million shares.

Since 2017, Radium has delivered high-rise residential projects worth RM2.1 billion in GDV, all within KL city.

As of March 31, Radium completed projects including Vista Wirajaya, Platinum Splendor Residence Semarak, Vista Semarak, Platinum OUG Residence, Vista OUG, Vista OUG PPAM, Vista Wirajaya 2, and PV9 @ Taman Melati.

SHARE
RELATED POSTS
  1. Taiwan’s Siliconware breaks ground for RM6 bil facility in Penang
  2. No impact from diesel subsidy rationalisations, says UEM Sunrise
  3. Public parks in 7 popular residential towns in Klang Valley