I-Bhd targets RM1.5bil GDV from two projects

In progress: I-Bhd plans to develop a new i-City out of the Klang Valley, but that it will have to wait until 50 of the current i-City in Shah Alam is completed.

I-Bhd, the developer of i-City, is looking to achieve a gross development value (GDV) of RM1.5bil this year from two of its projects.

Deputy chairman Datuk Eu Hong Chew said this would come from its high-end 8Kia Peng condominium that was expected to rake in some RM1bil. The rest would come from Hyde Towers @ i-City.

Nestled within Jalan Kia Peng on high grounds, 8Kia Peng @KLCC is a single 50-storey tower on freehold land, while Hyde is a 43-storey tower block with residential units.

Eu also expects the company’s revenue to increase this year, compared with last year.

For its nine months ended September 2015, revenue stood at RM183mil. Its full-year results are expected to be released soon.

“For example, in i-City we were fortunate as the bulk of the projects came on stream the last two to three years. Therefore, we have reached a stage where all the income will start rolling in for I-Bhd,” he told reporters on the sidelines of the groundbreaking of the Central Plaza @ i-City yesterday.

Commenting on the property industry, Eu said that the industry was still very much in demand. However, the only challenge was for buyers to get financing.

“We had the same bookings as 2014 last year. It was much more difficult last year for customers to get financing.

“But we are very confident that when the current concerns of the economy fade away, sentiments will be better,” he said.

He also added that the company was looking at developing a new i-City out of the Klang Valley, but that it will have to wait until 50% of the current i-City in Shah Alam is complete.

“It’s still a long way to go. We have planned for 24 towers and have only completed three, while seven are still under construction,” he said.

The group is currently focusing on its 1.5 million-sq-ft Central Plaza @ i-City, a shopping mall that is slated to be opened in 2018.

The mall has a GDV of RM850mil, with Thailand’s leading retail property developer Central Pattana Pcl holding a 60% stake in the project, while I-Bhd has a 40% share.

The shopping mall is intended to turn Shah Alam into a shopping destination, said I-Bhd.

“Other components of this tourism master plan include the three hotels planned for i-City, our theme park, our very own i-City performing arts and convention centre and our medical tourism hub,” said I-Bhd executive chairman Tan Sri Lim Kim Hong.

The shopping mall project is in line with the group’s business strategy of expanding its leisure business and also its investment property businesses.

“When i-City is fully developed over the next 10 years, the group will be able to enjoy a strong recurring income stream from these two segments,” the group said. - The Star