Tambun Indah plans RM200m capex

GEORGE TOWN: Property developer Tambun Indah Land Bhd has allocated RM100 million to RM200 million in capital expenditure this year to buy more land.

Managing director Teh Kiak Seng said the group is actively scouting for land in Penang especially in Seberang Perai.

“We will expand our landbank based on the opportunities that arise,” he said after the company AGM yesterday.

He said the group planned to add 200 to 300 acres to its 562 acres of undeveloped land in Seberang Perai Selatan.

“We’re talking to a few landowners in Seberang Perai but nothing has been confirmed,” he said.

Teh also said the group has achieved about 70% take-up rate for its on-going 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 this year,” he said.

He said the group’s unbilled sales totalled RM425 million as at March and are expected to contribute to the group’s earnings over the next two to three years.

Teh said the group is poised for better growth this year, driven by Penang’s booming property market.

He said the property market in Seberang Perai is expected to grow, boosted by the completion of the second Penang bridge.

“Since property prices on Penang Island skyrocketed, many Penangites have opted to buy properties on the mainland. This has increased our property sales, especially from our projects in Seberang Perai Selatan,” he said.

Tambun Indah posted pre-tax profit of RM23.98 million on revenue of  RM78.32 million in the first quarter ended March 31. — Bernama

This article first appeared in The Edge Financial Daily, on June 20, 2013.