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KUALA LUMPUR: Selangor Dredging Bhd (SDB) has announced its plans to launch two new developments — SqWhere in Kota Damansara, Petaling Jaya, and Jia1 in Taman Melawati, Ulu Kelang, with a total gross development value (GDV) of RM540 million in its 2014 financial year ending March 31 (FY14).
"SDB is confident that the positive economic outlook and massive investments in infrastructure will only enhance demand for its properties in the Klang Valley," managing director Teh Lip Kim said at its AGM on August 21. She said SDB is confident of the take-up for both projects due to the country's positive economic outlook.
SqWhere is a mixed development located on 4.8 acres (1.92ha) of leasehold land and commands a GDV of RM500 million. It comprises small office versatile offices (SoVo), retail, and serviced apartments. The built-ups of SoVo start from 557 sq ft. SqWhere is expected to be launched in October.
Jia1 is located on 8.4 acres of leasehold land with a GDV of RM140 million. It consists of 79 super link homes (size of 3,200 sq ft) and priced from RM1.5 million. It also offers 35 condominium units with built-ups between 800 sq ft and 1,000 sq ft, priced from RM400,000 to RM500,000. The developer has yet to finalise the date of launching.
In June this year, SDB launched an office and retail development on 2.51 acres of freehold land called The Hub. It comprises a 44-storey office tower and two blocks of retail units with a GDV of RM260 million.
Of the 276 signature suites in the office tower and the 13 4-storey retail units, 64% has been taken up. SDB recorded an improvement in its FY13 ended March. Earnings for the year rose to RM47.9 million. For the three months of FY14 ended June 30, the group registered a revenue of RM70.8 million, and a net profit of RM9.26 million.
Its business model consists of property development (80%) and recurring income (20%). According to Teh, Wisma SDB and Hotel Maya are both doing well, with 96% and 65% occupancy rates (OR) respectively.
"We aim to have a higher occupancy rate, but it depends on the market. We have to look at our OR and average room rates (ARR). If we want higher OR, we have to lower our ARR so we need to balance that," she said.
SDB started off as a tin mining company and is now focused on property management and leasing, hospitality and property development. Its projects include 20trees West at Taman Melawati, Five Stones in SS2, Petaling Jaya, Hijauan at Cavenagh, and Okio at Balestier Road in Singapore.
This article first appeared in The Edge Financial Daily, on August 23, 2013.
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