3 more new condos near KLCC!!!!!!
TA to be strong player in property
BY ANGIE NG
TA PROPERTIES Sdn Bhd, a wholly owned subsidiary of TA Enterprise Bhd, wants to make a stronger presence in the property sector, especially in the niche residential market, its executive director Datuk Mohamed Abid said.
If the overwhelming response received from buyers for its Damansara Idaman project – a gated and guarded bungalow enclave near Tropicana Golf & Country Club in Petaling Jaya – is an indication of things to come, then TA Properties may be on course for bigger successes.
From the day of its soft launch on Dec 23 last year, all the 21 units under phase one were snapped up within a week. The bungalows were priced from RM2.2mil to RM2.8mil each.
In an interview with StarBiz, Mohamed attributed the decision by the TA management to go big on property to the “right” environment in the country where home ownership is actively encouraged by the government, the easy availability of financing packages and consumers viewing property purchase as a good investment choice, with an annual capital appreciation of between 5% and 8%.
“We have very rich Malaysians who literally stash their cash under their pillows. They are just waiting for the right projects to come along to make their buy. There is, in fact, a growing appetite for well-planned exclusive residential enclaves with good design concepts in good locations,” he said.
Datuk Mohamed Abid (right) and Rabindran Thaver.
Mohamed said all the buyers for the Damansara Idaman bungalows came to know of the project by word of mouth and this reflected the sentiment for such high-end homes.
TA Properties director Rabindran Thaver said the company saw this as a stamp of approval “for what we have set out to achieve in Damansara Idaman and will give our all to make sure the project becomes our showpiece.”
The company has lined up four projects for launch this year, which would keep it busy for the next 5 to 8 years.
“We have very good land bank in prime locations in the Klang Valley, which is good for upmarket residential developments, and are confident of the good response for these projects,” Mohamed said.
A 62-acre parcel along the North-South Expressway in Damansara would be developed into Damansara Idaman, and the 1.5 acre and 1.4 acre plots along Jalan P. Ramlee in Kuala Lumpur would be the sites for TA Two and TA Three high-end condominium blocks.
Another project being considered is a proposed gated community of about 36 luxurious town houses on 3.2 acres along Jalan Beringin in Damansara Heights. The three-storey houses would have built-up areas of between 2,200 and 4,000 sq ft.
TA Two, adjacent to the company's Menara TA One office complex, looks set to be the company's first condominium development if the launch takes place this year.
With a proposed height of about 34 storeys, there would be 240 condominiums with built-up areas of 1,500 to 2,000 sq ft which are priced at about RM450 per sq ft (psf). The penthouse units would be around 3,500 sq ft.
This would be followed closely by TA Three, which offers two blocks of “very exclusive” condominiums, fronting the Kuala Lumpur City Centre (KLCC) twin tower. The condominiums would have built-up areas from 1,500 sq ft, with a price tag from RM500 psf.
For those who have some “stashed-away cash”, they have the opportunity to become owners of the four luxurious duplex units of about 7,500 sq ft, right on top of the twin blocks.
An aerial view of the Damansara Idaman project.
Mohamed said that with these projects, the contribution of TA Properties to the TA Enterprise group earnings would increase to around 15% to 20% in the next three to four years.
At present, the company's contribution is quite nominal, mostly from rental income from Menara TA One and some shop lots in Subang Jaya and UEP-Subang Jaya. The 37-storey Menara TA One with net lettable area of 368,254 sq ft is about 90% occupied and derived annual rental income of about RM5mil.
Its portfolio of properties overseas included the BC Gas Centre in Vancouver, Canada; TA Centre building in Johannesburg, South Africa; and the 363-room five-star Radisson Plaza Hotel in Sydney, Australia.
For the financial year ended Jan 31, 2003, TA Enterprise's net profit rose to RM15.8mil from RM10.4mil previously but revenue was down to RM150mil from RM192.6mil.
Mohamed said that although TA Properties had very strategic land banks, acquired before the regional financial crisis in 1997, “we considered ourselves lucky not to have launched the projects earlier, as we would have been caught like many others when the crisis hit the country.”
“In hindsight, this has been a blessing as with the economic recovery and bullish market sentiment now, we feel this year is the best year to launch our projects.
“With the land free of encumbrances, we also have the flexibility to adjust to the best timing to get the best response for our properties.”
The company also owned 1,013 acres in Bukit Beruntung, 95 acres in Kluang, Johor, and 5 acres in Ipoh, Fraser Hills and Port Dickson. Rabindran said the company was on the look out to expand its land bank in strategic areas in the Klang Valley.
“The best choice will be land of sizes between 60 and 70 acres which will be good for niche residential development, including those in the price range from RM500,000.”
The firm kicked off its first property project in 1995 - the Pandanmaran Industrial Park in Klang - which comprised mainly light industrial factories and shop lots.
To develop the remaining phases of the project into low-cost apartments and double-storey link houses, it has entered into a joint venture with Mixwell (M) Sdn Bhd, a unit of Siah Brothers Corp Bhd.