L&G to develop RM1.5b project in Sri Damansara

PETALING JAYA: Bandar Sri Damansara developer Land & General Bhd (L&G) plans to step up the development of its remaining 67 acres (26.8ha) of land in the prime township. The first of these projects will be a RM1.5 billion high-rise residential development on a 42-acre site to be launched by the end of this year, according to its managing director Low Gay Teck.

To be built over four phases, the project, code-named as "Meranti" as it was located along Persiaran Meranti in the township, will consist of 2,800 units of three-bedroom condominium, within the size range of 1,300 sq ft to 1,600 sq ft. According to Low, the product is mainly targeted at home buyers, as its design and features will incorporate practicality and functionality which serve better for family's use.

"The condo units are designed more for a family's day-to-day use. We have actually put up a very practical and very functional unit layout of three bedrooms with a large balcony. They also come with a full list of facilities," he said, adding that some features such as a jogging track, tree house and cabanas will also be provided for the enjoyment of the residents.

Low said the 42-acre site will not be fully developed, as the company plans to retain 50% of it as natural greenery, and will incorporate it into the development. L&G has not finalised the pricing of the condominium units yet, but according to Low, they are looking at around RM500,000 to RM800,000 per unit.

After Meranti, L&G will have 25 acres left in the township, which the company plans to develop into a mixed integrated commercial development, Low said. However, the plans are still in the initial stages and the project will only be developed later, he said.

The company is currently developing another high-rise development in the vicinity of Ampang, Kuala Lumpur, called the Elements@Ampang. The development, which comprises two blocks of high-end serviced apartments, has received encouraging sales as 70% of the first phase has been sold.

"The first phase is already 70% sold, and we expect it to reach 90% sales within the next two to three months. Next we will start phase two, which is the second block, towards the end of the year. One of the selling features of this project is its roof garden on the 42nd floor, which gives the residents a very panoramic view of the Kuala Lumpur city skyline as well as the Ampang and Melawati hill view," Low said.

Low said the company has bright prospects going into the financial year ended March 31, 2012 as it will recognise some of the revenue derived from the sales of its projects, especially from 8trium, the office tower development in Bandar Sri Damansara, as well as phase one of the Elements@Ampang. Revenue derived from phase one of Elements@Ampang alone will contribute RM300 million to the company's top line and will be spread out over two financial years, he said.

"The outlook is good. For our 8trium in (Bandar) Sri Damansara, which consists of two 21-storey office tower, we have sold 93% of the office space. The project is targeted for completion by the first quarter of next year. It also has two levels of retail podium which the company is retaining for future recurring income," he said.

The gross development value of the 8trium project is RM100 million and revenue recognition will be spread out over two financial years.

L&G also has other businesses such as plantations and education. Going forward, contributions from the plantation and education business will shrink from over 30% now to only 10% as the group seeks to focus on its core business of property development.