L&G to start RM400 million development before year-end

KUALA LUMPUR: Land & General Bhd’s (L&G) proposed joint-venture (JV) mixed development in Jalan Ampang here is expected to commence towards the end of the year, said its managing director Low Gay Teck.

He said the development, comprising serviced apartments, studio apartments and commercial space, would have a gross development value (GDV) of about RM400 million.

“We have submitted some amendments to the development order (DO), so we are waiting for the authorities to approve the amendments to the existing plans,” Low said after the company’s extraordinary general meeting (EGM) on Feb 3. He said the project would take three years to complete.

At the EGM, shareholders approved the proposed acquisition of the project site measuring 10,546 sq m by the JV company, Elite Forward Sdn Bhd, for RM55 million.

L&G owns 50% of the JV company via its wholly owned Synergy Score Sdn Bhd, while the remaining 50% is held by Forward Splendour Sdn Bhd, which is related to L&G major shareholder Mayland Parkview Sdn Bhd.

“[The development] mostly would be residential serviced apartments and studio apartments with one or two bedrooms, apart from the limited usage for commercial space to facilitate the residents,” Low said, adding the target market was single people and expatriates.

He said the name of the project and the number of apartment units to be developed had yet to be finalised. “Maybe approximately 1,000 units,” he said.

Low described the project as “niche” as there were not many similar projects in the vicinity. “Most of the condominiums or serviced apartments in Ampang cater more to family living,” he said.

On pricing for the units, he said it could be in excess of RM500 to RM600 per sq ft (psf), compared with the current rate for the area of up to RM800 psf.

L&G’s other ongoing projects include the 8trium commercial office in its flagship Bandar Sri Damansara, which has a GDV of RM160 million and is expected to be completed in the first quarter of 2012.

L&G is also targeting to launch a condominium project in Bandar Sri Damansara involving four phases by year-end or early next year.

Low said the first phase would have a GDV of approximately RM450 million.

This article appeared in The Edge Financial Daily, Feb 4, 2010.