GEORGE TOWN: Property developer, Tambun Indah Land Bhd, plans to spend RM100 million to RM200 million in capital expenditure (capex) this year to buy more land.
Managing Director Teh Kiak Seng said the group was actively scouting for land in Penang especially in Seberang Perai.
"We will spend to expand our landbank based on the opportunities that arise," he told reporters after the group's annual general meeting today.
Teh said the group planned to add about 200 acres to 300 acres of land to the current 562 acres of undeveloped land in Seberang Perai Selatan.
"We're currently talking to a few landowners in Seberang Perai but so far nothing has been confirmed," he said.
Teh also said the group had secured about 70% take-up rate on its ongoing projects.
"We're expecting our projects -- Taman Bukit Residence, Camellia Park and Seri Permai -- with a total gross development value of RM114 million to be completed by this year," he said.
He said the group's unbilled sale totalled RM425 million as at March and it is expected to contribute to the group's earnings over the next two to three years.
Teh said the group was poised for better growth this year, driven by Penang's booming property market. He said the property market in Penang's mainland is expected to grow, boosted by the completion of the Penang Second Bridge project.
"Following the skyrocketing property prices on Penang Island, many Penangites have opted to buy properties on the mainland, this has increased our property sales, especially our current projects in Seberang Perai Selatan," he said.
Tambun Indah Land's pre-tax profit rose 32.1 per cent to RM23.98 million in the first quarter ended March 31, 2013 from RM18.15 million in the same period last year. Its revenue increased 18.7 per cent to RM78.32 miilion from RM65.99 million previously.
Teh said the revenue growth was mainly derived from newly launched projects -- Pearl Residence and Pearl Indah 3 -- on Penang's mainland and Straits Garden on Penang island. - Bernama
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