KUALA LUMPUR: IOI Properties Bhd, the demerged entity of IOI Corporation Bhd, is expected to register revenue of more than RM2.5 billion in 2016.
IOI Corp Founder and Executive Chairman, Tan Sri Lee Shin Cheng said IOI Properties has lined up several projects for launch in the Klang Valley and Iskandar Malaysia as well as in Singapore and China.
He said the overseas property business was expected to contribute about 35 to 40% of the property developer's turnover in the next three years.
"Going forward, IOI Properties alone is going to generate very good revenue stream," he told reporters on the sidelines of Invest Malaysia 2013, here today.
IOI Properties, which has total assets worth RM15 billion, is slated for a mega-relisting in September 2013. Prior to IOI Properties' delisting in 2009, it was the biggest property company in terms of profitability.
Based on 2012 figures, IOI Properties is the second-largest property developer after SP Setia Bhd, with an operating profit of RM506.3 million compared with the latter's RM549.9 million.
Lee said the Singapore property business was expected to contribute about 25% to IOI Properties' revenue, while the project in Xiamen, China was expected to contribute about 15%.
He said Xiamen project was divided into two phases -- a condominium plus retail development and a mixed development.
"The first phase will open for sale next month, we are expecting an excellent take-up rate, just like any other projects we have in China," he added.
Lee said IOI Properties' projects in Johor alone, including those in the Iskandar Malaysia region was already churning earnings of up to RM800 million per annum.
"Many more projects are in the pipeline and that number will continue to increase," he said. - Bernama
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