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Thursday, 4 May 2017

(The Star) New projects to drive I-Bhd’s revenue

SHAH ALAM: Buoyed by unbilled sales of RM400mil and a growing portfolio of investment properties that is on track to reach the RM1bil mark, I-Bhd is confident of a good year ahead.

The unbilled sales and launch of new projects will drive the group’s target of hitting RM500mil in revenue next year.

I-Bhd, which is the developer of the 72-acre i-City project in Shah Alam, is also sitting pretty with a net cash position of RM180mil as at the end of 2016 that the developer expects to come in handy as it builds up its investment properties that stand at RM355mil now.

Going forward, I-Bhd deputy chairman Datuk Eu Hong Chew said that the group’s property development division would be kept busy developing a mix of 14 residential and commercial towers to be built over the next 10 years in i-City.

The projects are expected to fetch a gross development value (GDV) of RM8bil.

“i-City will see another 10 to 15 years of development. Inclusive of potential enhancements to i-City, the property development division is expected to contribute some 23% margin per year.

“Meanwhile, the group’s leisure segment is expected to grow from the upcoming Doubletree by Hilton Hotel as well as Meetings, Incentives, Conferences and Events, with a revenue target of RM100mil per year at a 7% return on net assets,” he said after the group’s AGM yesterday.

i-City’s GDV will also be extended via the relocation of the i-City South Data Centre Complex, the redevelopment of low-rise buildings on a seven-acre land, as well as the development of Clarke Quay@i-City.

While contributions from the property investment segment is currently small with assets worth a total of RM355mil, there will be upcoming contributions from the 1.5 million-sq-ft Central i-City shopping mall, slated to open in 2018, and the fully-owned 7,800 car park bays.

I-Bhd’s properties held as investments in i-City are expected to fetch a rental yield of 5% by 2020.

i-City is set to be an integrated centre of hospitality and tourism, with its RM1bil tourism masterplan comprising the Leisure Park, a regional mall, three hotels, a convention centre and a wellness hub.

i-City is a high-rise urban city within the Greater KL area that will host 30 million visitors a year, and home 25,000 residents and 50,000 knowledge workers.

A decade from now, i-City is expected to be an ultrapolis with 28 residential and commercial towers that will include elements of education, wellness, home for senior citizens and five-star hotels.