PJD to launch RM750m GDV project in Cheras

KUALA LUMPUR: PJ Development Holdings Bhd (PJD) is expected to launch an integrated development project with gross development value (GDV) of about RM750 million in Cheras in mid-2011, said its managing director Wong Ah Chiew.

He said PJD had obtained the green light from the authorities for the development order of the project and was currently awaiting approval for its building plans, adding that the project would be on a 20-acre (8ha) area.

While tight-lipped on details of the layout plan, Wong noted the project would have commercial units and high-rise serviced apartments as well as a retail shopping mall, among others.

“We have not really named it (project) as yet, as it is in the final stages of approval. It will be quite a big development,” he told media representatives after the group’s EGM yesterday.

On its Duta Kingsbury project in the Sri-Hartamas-Mont’Kiara area, Wong said PJD was expected to launch the project consisting of over 60 units of three-storey super-link homes and two blocks of condominium by early next year.

“The piling part of the project has been completed. The whole thing was supposed to be a 2007-08 project but because of the global financial crisis, we have redesigned the project,” he pointed out.
Wong: Property development accounted for 40% of group revenue.
Following positive sentiment in the property market, he said PJD decided to upgrade the Duta Kingsbury project by adding “more contemporary” design in terms of space and privacy coupled with a state-of-the-art clubhouse and facilities for modern living.   

Wong said the luxurious gated project on 10.3 acres of land was expected to have GDV of about RM700 million, stressing that super-link units were each equipped with a lift together with built-up area exceeding 3,000 sq ft.

He noted the super-link units were likely to be priced in the region of RM3 million each while 200 condominium units with average built-up area of 2,000 sq ft were likely to be priced above RM650 per sq ft.

“For the condo, we have incorporated a new design and new function which is something very special. We will only give them a surprise during the launch,” he said adding that the availability of “choice land” in the Mont’Kiara area was getting very scarce.

The low-profile developer had purchased the 10.3-acre land for its Duta Kingsbury freehold project almost ten years ago.

PJD’s managing director is also confident that Duta Kingsbury and the soon-to-be-finalised Cheras project would contribute a steady income flow for PJD, adding that property development could contribute more towards the group’s revenue in the following calendar year onwards.

“With this (Cheras) project and Duta Kingsbury, it would add up to more than RM1 billion in GDV,” said Wong, noting there were also more projects in the pipeline.

For the year ended June 30, 2010 (FY10), the group’s net profit surged 133% to RM52.75 million from RM22.62 million a year ago, while riding on stronger revenue of RM665.82 million versus RM628.48 million.

PJD posted earnings per share of 11.58 sen for FY10 while net assets per share stood at RM1.73 as at June 30.

Wong said property development accounted for about 40% of its group revenue in FY10 while the balance 60% of the group’s revenue came from cable manufacturing as well as hotel and leisure services under the brand name of Swiss Garden International Hotels and Resorts.

Asked if PJD had other major projects anticipated to be launched next year, he said the group was also looking to launch the Coral Ville seafront condominium project in Kuantan some time next year which is situated on 22 acres of prime land.

“It will be interesting. There will be a resort kind of theme for the project which has a very long beach fronting the South China Sea,” he said adding that PJD was currently building its sales office for the project.

However, Wong noted PJD was still in the midst of working out the expected GDV for Coral Ville as it might consider scaling down the project which would include hotel accommodation.

Briefly on the property market, he opined: “We are still very optimistic in the property market especially in the Klang Valley. The supply for choice location is very tight but choice property demand is high.

He also said the Malaysian property market had “moved up” a lot though construction, labour, logistic costs as well as price of raw materials were increasing. He said with Malaysia planning to be a high-income economy soon, the population would want to upgrade their living style which would include comfortable housing among its goals.

PJD’s share price yesterday rose one sen to close at 81.5 sen with turnover of 1.74 million shares. At this price, the company has a market value of RM371.8 million.

This article appeared in The Edge Financial Daily, October 12, 2010.

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