I-Bhd eyes RM1.5 bil GDV in 2016

Datuk Eu Hong ChewKUALA LUMPUR (Feb 19): I-Bhd will be eyeing projects worth RM1.5 billion in gross development value (GDV) this year, which includes the 8Kia Peng condominium in Kuala Lumpur City Centre, as well as the 43-storey Hyde Tower residence that is due to be launched next week.

The group’s deputy chairman Datuk Eu Hong Chew (pictured) said that the 50-storey tower 8Kia Peng will have a GDV of RM1 billion, comprising 442 units (315 units of serviced apartments and 127 units of small office/home office).

Hyde Tower, meanwhile, will have a GDV of RM500 million and will be built within the group’s 72-acre (29.13ha ) i-City in Shah Alam.

Eu is bullish on the group’s turnover for 2016 mainly due to the two projects it has in store, as well as the income from its construction works that will start to roll in this year.

“The bulk of our projects came on stream over the last three years and the construction was at the basement stage of development, so we could not recognise it.

“I am confident that we will do better in 2016 than last year because of the progress in construction works,” he told reporters after the signing ceremony to appoint Setiakon Builders Sdn Bhd as the master contractor for 8Kia Peng.

“[Data] shows that there is still strong demand for our properties, despite the current concerns over the economy,” he said.

Eu revealed the group is expecting a better revenue for 2015 compared with the year before, although he declined to disclose the amount as I-Bhd will be announcing its fourth quarter ended Dec 31, 2015 (4QFY15) results soon. I-Bhd achieved a revenue of RM261.11 million in FY14.

Eu said that I-Bhd is in a strong cash position with zero gearing. The property developer’s cash balance was RM115.1 million as at Sept 30, 2015.

“We have always been a very conservative company. For the i-City project, we went into a joint venture with the land owner and hence do not have to pay for any land cost.

“If you look at property developers in the country, those that are financially strong are the ones that benefit from tough times,” he noted.

Asked if the group has any plans to venture beyond the Klang Valley, Eu said that it will only do so when it completes more than 50% of the i-City project. “We have 24 towers currently lined up, and only completed three so far. So, it’s still a long way to go,” he said.

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This article first appeared in The Edge Financial Daily, on Feb 19, 2016. Subscribe to The Edge Financial Daily here.

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