Titijaya plans launches worth RM400 mil by middle of next year

SUBANG JAYA (Sept 9): Titijaya Land Bhd plans to launch three projects worth RM400 million in gross development value (GDV) in its financial year ending 30 June, 2016 (FY2016).

Titijaya deputy group managing director Lim Poh Yit said in a press conference today that this was after the company had scaled down its launch plans due to uncertain market conditions.

The three launches include the last block of H2o@Ara Damansara, office units at Emporia@Monfort in Shah Alam and a yet-to-named landed residential project in Cheras.

H2o is a serviced apartment development launched this year. It has a GDV of RM794 million and expected to be completed in 2019.

Emporia@Monfort is a mixed-use development in Glenmarie, Shah Alam. It has an estimated GDV of RM1.5 billion and expected to be launched by early 2016.

The landed residential project in Cheras has an estimated GDV of RM75 million. Titijaya has yet to decide on the launch date but Lim is confident it will be well received despite an indicative price tag of RM1 million upwards due to the shortage of landed properties on the market.

“We are looking at sales of RM400 million for FY16. Some of it will be contributed by earlier launches and unbilled sales,” said Lim, adding that the unbilled sales stood at RM732 million as at FY2015, mostly from high-rise sales.

Lim revealed other projects in the planning stage, including Titijaya’s first project on Penang island located on recently acquired 20.3 acre land parcel in Batu Maung.

The residential component of the mixed-use development is expected to be launched at the end of next year at a selling price of between RM500,000 and RM700,000.

Titijaya managing director Tan Sri Lim Soon Peng is confident of the viability of the Penang property market due to the state’s growing population and reputation as an international travel destination.

“We will have hotel and a very special designed seafood place in our Penang project. I have confidence in the  Penang property market, so if opportunity arises, we will [acquire] more land in the island,” he said.

The company is also looking to purchase land in the Klang Valley.

As at FY2015, Titijaya has 442.6 acres of land with an estimated GDV of RM8.6 billion, which include its on-going and upcoming developments. The company has a net cash position, with RM30.8 million on hand.