KUALA LUMPUR: Property developer I-Bhd is in talks with a few parties over a land deal for the group’s next phase of development, which include urban projects and townships.
Deputy chairman Datuk Eu Hong Chew said the group is actively looking for land in the Klang Valley.
“We are looking at a sizeable project worth RM5bil to RM6bil. As we do this, we continue with our asset light strategy like we’ve always done before.
“Ideally, we want to undertake this project as a joint venture or via acquisition,” he said.I-Bhd In Talks Over Land Deal For RM5bil To RM6bil Project Click To Tweet
Speaking at a briefing after the group’s talk titled “In the Spotlight” at Bursa Malaysia, he added that I-Bhd is not in a stage to announce the latest project yet.
Eu said as the group’s i-City mega project in Shah Alam would keep it busy for another 10 to 15 years, so the focus would be on expanding its footprint outside of Shah Alam.
He added that I-Bhd is currently working on planning submissions and that the new project would start in two to three years.
For its urban projects, the group is looking to develop some 20.2ha to 28.3ha with a gross development value (GDV) of up to RM7bil while for townships, I-Bhd is looking at 202ha to 242ha with the same amount of GDV.
Currently, the group has RM745mil in unbilled sales at the end of 2015 and is building the Central i-City, which is a one-million-sq-ft mall, in collaboration with the Central Pattana Group of Thailand.
Also, the group is set to develop a four-star hotel to be managed by Double Tree Hilton in the 29.1ha freehold ultrapolis township.
It was reported last month that I-Bhd is targeting to double its revenue and obtain a steady revenue of RM500mil to RM600mil per annum by 2018.
The group also has plans to accumulate a RM1bil investment property portfolio by 2018 and is developing its leisure segments, with targets for these segments’ recurring income to contribute half of I-Bhd’s earnings.
Its investment property portfolio now stood at RM285mil, said Eu.
“Investment property is a work in progress and by 2018, when they are completed, we will have RM1bil worth of property investments. If you take the real estate investment trust yields of about 5% from the RM1bil, that is a RM15mil contribution to I-Bhd’s bottom line,” Eu said.