Ivory Properties to launch RM1.4b worth of projects

KUALA LUMPUR (Mar 6): Penang-based developer Ivory Properties Group Bhd plans to launch projects worth RM1.4 billion in gross development value (GDV) this year, the company said in a statement after its EGM on Monday.

These projects are The Latitude in Mount Erskine, Penang Times Square phases three and four, City Mall and City Residence in Tanjung Tokong.

Ivory Properties chairman and group CEO Datuk Low Eng Hock said the company is targeting RM800 million of sales this year, including ongoing projects.

Last year, the company booked RM121.8 million in sales for completed and ongoing project as well as unbilled sales of RM227 million.

Shareholders approved the company's plan to purchase and develop a 41.02ha site in Bayan Mutiara from Penang Development Corp and Chief Minister of Penang (Inc). They also approved the joint venture with Dijaya Corp Bhd to develop the land, according to the statement.

Tropicana Ivory Sdn Bhd, a 55:45 joint venture between Dijaya and Ivory Properties, will develop an estimated RM10 billion GDV mixed-use residential and commercial property project known as Penang World City.

In the statement, Low also clarified that the word negotiations used in the circular on its Bayan Mutiara deal referred to the period after the open competitive tender was successfully secured on July 25, 2011.

"The reference to the word negotiations was only conducted with the state government after the highest tender price was accepted.

"This includes incorporating due dates for the various submissions, traffic impact assessment and term of payment which was reduced from eight to five years," he said.

Ivory Properties won the bid at RM240 per sq ft amounting to RM1.072 billion.

The deal came under scrutiny amid allegations that it was done on a negotiated basis instead of an open tender which have been refuted by the Penang government.

Other resolutions on rights issue, bonus issue, finan assistance, acquisition of the remaining 51% equity interest in Ivory Villas Sdn Bhd, increase in authorised share capital and amendments to memorandum and articles of association, were also passed at the EGM.