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Monday, November 11, 2013

Titijaya lines up 2 launches in Q1 2014


PETALING JAYA (Nov 11, 2013): Property developer Titijaya Land Bhd, which is launching the prospectus for its initial public offering (IPO) today, will launch two new projects worth a combined gross development value (GDV) of RM780 million in Selangor in the first quarter of next year.

Its COO Lim Poh Yit (pix) said groundwork on the H2O@Ara Damansara mixed development, valued at some RM570 million, is expected to begin in the middle of next year, while that on the smaller RM210 million Embun@Kemensah Heights residential project in Ulu Kelang has started in the third quarter of this year.

"These projects are slated to be completed in three to five years," Lim told SunBiz in an interview.

Under the concept of an "aquatic" environment, H2O is a gated and guarded serviced apartment that spans 6.04 acres of freehold land.

Embun, meanwhile, features three-storey semi-detached houses and four-storey courtyard villas.

Lim said H2O and Embun will bump up the GDV of the group's projects to RM3.3 billion.

"Our biggest project to date is the RM1.5 billion integrated development in Shah Alam, which comprises retail space, office units and serviced apartments. This is followed by Klang Sentral Service Apartment, which is valued at RM700 million," he added.

Titijaya Land also plans to launch the subsequent phases of its Seri Alam Industrial Park, the Zone Innovation Park@ Sungai Kapar Indah and the Mutiara Point Business Park developments in later stages, said Lim.

On-going projects under Titijaya Land's portfolio currently have a total GDV of some RM1.08 billion, namely Subang Parkhomes and the current phases of Seri Alam Industrial Park and the Zone Innovation Park.

Titijaya's IPO, which is due to list on the Main Market of Bursa Malaysia this month, comprises a public issue of 81.7 million new shares and an offer for sale of 49.5 million existing shares.

For financial year ended June 30, 2013 (FY13), Titijaya Land posted a 53% increase in net profit to RM52.2 million from RM34.1 million a year ago, while revenue rose 64% to RM193.8 million from RM118 million respectively in FY12.

Founded by Lim's father Tan Sri Lim Soon Peng, who is Titijaya Land group managing director, the Klang Valley-centric property group has developed over 3,000 units of properties with a total GDV of RM1.14 billion since 2001 up to September 2013.

Lim said together with his father and sister Charmaine Lim Puay Fung, who is involved in the sales and marketing of the group, the family will continue to spearhead and determine the course of Titijaya Land despite the Lim family's shareholding in the group being reduced to 61.4% post-IPO from 100% currently.

"The soul is still the same, as we're still doing property development. But we do expect some changes coming in after Titijaya Land goes public in terms of some newer ways of doing things," said Lim.

He acknowledged that the management team of Titijaya Land is young, but that this enables it to contribute fresher ideas, which will be backed by the founder's experience.

"My father emphasises a lot on the concepts. He always pushes us hard to find ways to add value to our property buyers, and he certainly shown us the importance of being hardworking and building trust in doing business," said Lim.

On the recent revision of the real property gains tax (RPGT) rates and the increased threshold of RM1 million for foreign buyers announced in Budget 2014, Lim said Titijaya Land will not be affected from these measures as most of its buyers are owner-occupiers.

"Most of our customers are genuine home buyers. They buy houses for their own stay. Moreover, our pricing strategy is to capture the young crowd market. Generally, our properties are fairly affordable," he said.

Lim also believes that property prices in the local market will continue to escalate, mainly due to the cost push factors such as the shortage of workers following more construction projects and infrastructure works, while the cost of construction materials may be pushed up after the implementation of the goods and services tax in April 2015.

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