Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily, on February 19, 2016.

 

PETALING JAYA: MK Land Holdings Bhd plans to launch five new property projects with a total gross development value (GDV) of RM571 million before the current financial year ends on June 30, 2016 (FY16).

MK Land chief executive officer Lau Shu Chuan said although the overall market is currently subdued, the group is still moving ahead with some new launches in FY16 in the affordable home segment.

Leading the new launches is its Residensi Suasana@Damai condominium project in Damansara Damai here, which has a GDV of RM400 million and will be launched in April.

Spanning 5.65 acres (2.29ha), it features 780 condominium units, which would be launched in three phases. The units come in two sizes — 1,015 sq ft and 1,455 sq ft — with prices starting from RM450,000 or RM444 per sq ft.

The group will also launch next month three affordable housing projects in Ipoh, Perak, comprising three phases within its Klebang Putra project valued at RM98 million, and the last phase within its Meru Perdana 2 development, with a GDV of RM73 million in June.

Speaking to reporters after MK Land’s Chinese New Year gathering here yesterday, Lau said demand for residential properties remains strong, although the overall market is lukewarm.

In view of this, Lau said the group had obtained approval from the urban wellbeing, housing and local government ministry to extend the completion date of Residensi Suasana@Damai to 48 months from 36 months. This means it will be completed latest by 2020.

On the group’s sales target for FY16, Lau said it is a challenging time and affordable housing’s profit margins are not high.

“That’s why we need to do some belt-tightening,” he said, adding that it will be cautious about its advertising spend this year.

MK Land’s land bank stands at 5,000 acres, with more than 4,000 acres in Perak, of which 3,000 acres are located in Lembah Beriah.

Lau said the group is planning a mixed development on that land, comprising affordable housing, commercial, industrial area and an education hub.

On the group’s 55-acre piece of land in Setiawangsa, Kuala Lumpur, which is available for sale at a price tag of RM200 million, Lau said there are potential buyers for the land.

However, it would take some time to close a deal as it is not easy for buyers to secure financing from banks, he added.

As at Sept 30, 2015, the group had a net cash of RM55.34 million.

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