BON Estates secures RM300 mil loan for The Estate

KUALA LUMPUR (Oct 28): Boutique developer BON Estates Sdn Bhd (formerly known as PPM Realty Sdn Bhd) is eyeing more land in Penang and the Klang Valley for its high-end properties following the success of past projects.

“We are now focusing on expanding in the Klang Valley, specifically in Bangsar, Kuala Lumpur City Centre and Mont’Kiara. In the long term though, we may build more properties in Penang and could even branch out into building townships in the Klang Valley,” said its managing director Goh Soo Sing.

However, Goh declined to elaborate on how much the company will be spending on new land buys, saying instead everything was still too early.

He was speaking to reporters yesterday after inking an agreement to secure the RM300 million bridging-term loan from Malayan Banking Bhd (Maybank) for the development of its upcoming residential project in Bangsar South, The Estate.

Luxury is part of the niche developer’s DNA, said Goh, hence it is more inclined towards building upscale properties to cater to the “ever-growing younger market”.

BON Estates is banking on the upscale The Estate — its first project in the Klang Valley — which comprises two 46-storey towers with 328 condominium units, to successfully make a name for itself in the Klang Valley. It will be built using energy-efficient materials, said Goh.

The project, which sits on a 3.68-acre (1.49 ha) land and carries a gross development value (GDV) of RM650 million, is scheduled to commence in November 2016 and be completed by 2020.

The units are sized between 2,346 sq ft and 5,258 sq ft, while prices range from RM1.9 million to RM6 million. To date, 100 units have been booked by customers.

Other notable projects under the company’s belt include the Minden Gardens and White Lily residential developments in Penang, which have achieved a 100% take-up rate. It has also recently completed its V@Summerplace in Johor Bahru.

Meanwhile, the company has earmarked two more plots of land measuring four acres and 11 acres in Ayer Itam and Seberang Perai for future development.

Outside Malaysia, BON Estates is developing Show DC, primed to be the “first Asean tourism mall” with a GDV of US$300 million (RM1.25 billion), as well as REEM Island, a 1,606-acre mixed development, in Abu Dhabi.

“We are pleased to receive the support from Maybank with this loan facility. We hope that their confidence in our flagship development reflects our capabilities and the high potential that The Estate brings,” said Goh.

This article first appeared in The Edge Financial Daily, on Oct 28, 2016. Subscribe to The Edge Financial Daily here.