SPB to launch RM260m GDV high-end condos in Damansara Heights
by Yantoultra Ngui Yichen
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KUALA LUMPUR: Selangor Properties Bhd (SPB), one of the largest landowners in Damansara Heights, expects to launch a high-end condominium project at Jalan Batai here consisting of 107 units, each with a built-up area of more than 3,000 sq ft, this year.
The project, which will be its first key project in Damansara Heights since the development of Menara Millennium in 2000, is estimated to fetch a gross development value (GDV) of between RM260 million and RM300 million.
“For the Batai project, we have gotten our approval; at the moment we are in the planning stages for earthwork. As for launching, it is expected to be this year, and the earliest we are talking in terms of income coming in will be over the next three years,” said SPB’s financial controller Lee Boon Kian on April 30, declining to confirm the GDV estimates.
He said SPB had not finalised the pricing yet. However, he said the pricing for the surrounding areas in the Damansara Heights would be around RM800 psf to RM1,000 psf.
On whether it was a good time to launch the project this year as the property cycle might have reached its tipping point, Lee said the supply for high-end properties in Damansara Heights was limited, unlike those in the Kuala Lumpur City Centre (KLCC) area where supply was more than demand.
SPB, together with a joint venture partner E&O Property Development Bhd, would also develop the Semantan condominiums and offices projects located in some of its properties in Damansara Heights, he said.
“As for the Semantan condominiums and offices, we are still waiting for the development order, it is still pending,” Lee said.
On its financial performance, he said SPB would derive most of its profit for the fiscal year ending Oct 31, 2008 (FY08) from rental income such as its shops located in Jalan Batai, Taman Tunku flats and the ongoing low-to-medium property development projects in Bukit Permata and Selayang Mulia.
In FY07, SPB’s pre-tax profit was mainly derived from its property and investment holdings business, including rental income and sales of assets while its property development business contributed only 2% mainly from the housing projects in Bukit Permata and Selayang Mulia. The balance 13% came from its education business — the 51% owned Help International Corporation Bhd.
In terms of its overseas operations, Lee said SPB was currently expanding its 50% held Claremont Shopping Centre in Perth, Australia by buying more land around the mall and building 82 units of apartment with a GDV of some A$125 million (RM368.84 million). He added that SPB planned to dispose of its remaining assets in Coolum Lagoon Resort in Queensland, Australia.
Moving forward, Lee said SPB, with 10.52ha of undeveloped land in Damansara Heights, would explore opportunities to acquire more land in the Klang Valley area. As at end-FY07, the group had cash and cash equivalents amounting to RM249.35 million.
by Yantoultra Ngui Yichen
Email us your feedback at [email protected]
KUALA LUMPUR: Selangor Properties Bhd (SPB), one of the largest landowners in Damansara Heights, expects to launch a high-end condominium project at Jalan Batai here consisting of 107 units, each with a built-up area of more than 3,000 sq ft, this year.
The project, which will be its first key project in Damansara Heights since the development of Menara Millennium in 2000, is estimated to fetch a gross development value (GDV) of between RM260 million and RM300 million.
“For the Batai project, we have gotten our approval; at the moment we are in the planning stages for earthwork. As for launching, it is expected to be this year, and the earliest we are talking in terms of income coming in will be over the next three years,” said SPB’s financial controller Lee Boon Kian on April 30, declining to confirm the GDV estimates.
He said SPB had not finalised the pricing yet. However, he said the pricing for the surrounding areas in the Damansara Heights would be around RM800 psf to RM1,000 psf.
On whether it was a good time to launch the project this year as the property cycle might have reached its tipping point, Lee said the supply for high-end properties in Damansara Heights was limited, unlike those in the Kuala Lumpur City Centre (KLCC) area where supply was more than demand.
SPB, together with a joint venture partner E&O Property Development Bhd, would also develop the Semantan condominiums and offices projects located in some of its properties in Damansara Heights, he said.
“As for the Semantan condominiums and offices, we are still waiting for the development order, it is still pending,” Lee said.
On its financial performance, he said SPB would derive most of its profit for the fiscal year ending Oct 31, 2008 (FY08) from rental income such as its shops located in Jalan Batai, Taman Tunku flats and the ongoing low-to-medium property development projects in Bukit Permata and Selayang Mulia.
In FY07, SPB’s pre-tax profit was mainly derived from its property and investment holdings business, including rental income and sales of assets while its property development business contributed only 2% mainly from the housing projects in Bukit Permata and Selayang Mulia. The balance 13% came from its education business — the 51% owned Help International Corporation Bhd.
In terms of its overseas operations, Lee said SPB was currently expanding its 50% held Claremont Shopping Centre in Perth, Australia by buying more land around the mall and building 82 units of apartment with a GDV of some A$125 million (RM368.84 million). He added that SPB planned to dispose of its remaining assets in Coolum Lagoon Resort in Queensland, Australia.
Moving forward, Lee said SPB, with 10.52ha of undeveloped land in Damansara Heights, would explore opportunities to acquire more land in the Klang Valley area. As at end-FY07, the group had cash and cash equivalents amounting to RM249.35 million.
