KUALA LUMPUR: Malton Bhd, best known for its Pavilion Kuala Lumpur development, will launch 500 units of serviced apartments within its RM3.5 billion Bukit Jalil City project in the next two weeks. Prices will start from RM775 per sq ft.

Called "The Park Sky Residence", the serviced apartments are part of Phase 2 of the Bukit Jalil City project, which is a joint venture development with Ho Hup Construction Co Bhd on a 50-acre (20.2ha) tract of land. The Park Sky Residence comprises a total of four blocks of serviced apartments, housing 1,098 units.

Malton executive director Hong Lay Chuan said the serviced apartments will feature two-bedroom, three-bedroom and dual-key units, with built-ups ranging from 868 sq ft to 1,565 sq ft. Bukit Jalil City is divided into four major components. Phase 1, which features 112 units of three- and fi ve-storey shop offices, has been fully taken up. Construction of the shop offices is under way and will be completed in two years. Phase 3 will involve the development of a regional shopping mall, which has been labelled "Pavilion 2", and Phase 4 is a proposed hotel or corporate office tower. The whole development is targeted to be completed by 2019.

Undeterred by tighter lending conditions and a slowdown in the property market following the implementation of the goods and services tax (GST), Hong said Malton remains optimistic that the take-up rate for its upcoming launches will be "encouraging".

"What we are off ering is different... If you take a look at the vicinity of [Bukit Jalil City] we are not only adjacent to an 80-acre park but also provide retail services... which fit into people's lifestyle nowadays," he told reporters after the unveiling of the project by Federal Territories Minister Datuk Seri Utama Tengku Adnan Tengku Mansor yesterday.

On the 400 serviced apartment units at its Nova Pantai project in Pantai Dalam, Hong said Malton (fundamental: 0.8; valuation: 2) will be launching them next year. It will also kick off its Ukay Spring project in Ampang, comprising semi-detached and link houses worth RM180 million in gross development value in 2016.

Hong said Malton has over 202.35ha of land bank, that has yet to be developed, located in Batu Kawan, Penang (121.41ha) and Pengerang, Johor (80.94ha). "We have yet to finalise what kind of properties are to be developed on the land. We will only plan it after we have completed the Bukit Jalil City project," he said.

Hong said Malton's current unbilled sales and order book both stand at RM1.3 billion, which will keep the group busy for the next three years. For the fi nancial year ended June 2014 (FY14), about 70% of Malton's net profit came from property development and the remaining 30% from the construction segment.

For the third quarter of FY15 ended March, Malton posted a 95.4% jump in net profit to RM5.1 million from RM2.67 million a year ago. It attributed the improved performance to higher billings from its Bukit Jalil City project and the SK One Residence project in Seri Kembangan.

Shares in Malton closed up 0.57% to 88 sen yesterday, with a market capitalisation of RM392.36 million.

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This article first appeared in The Edge Financial Daily, on June 10, 2015.