Ideal Sun City expands property investment business to Kuala Lumpur

KUALA LUMPUR: Ideal Sun City Holdings Bhd, which began diversifying into property investment holding last year with the purchase of commercial units in Penang, is widening its property base by buying 15 light industrial unts in Anzen Business Park, Kuala Lumpur, for RM6.155mil.

The Penang-based project management service firm told Bursa Malaysia that the 15 properties in Taman Bukit Maluri, with built-up areas ranging from 1,076 sq ft to 2,153 sq ft, had a 99-year leasehold ending Nov 27, 2079.

“All 15 properties are rented out with average gross rental yield of approximately 5.9% per annum based on the market value of the properties,” it said.
  
Ideal Sun City said the acquisition would allow the group to expand its property base not only in terms of the number of properties but also in other locations, which would reduce the concentration risk of the properties owned by the group.

It said the board also believed that the acquisition would put the existing and prospective funds of the group to better use by generating more stable returns and recurring income from the rental of the properties.

In its circular to shareholders on the proposed diversification in December 2014, Ideal Sun City said the company’s existing key management were not only experienced within the property project management business but were also familiar with the property market of Malaysia due to their experience in working with property development projects.

“Hence, the existing management team will continue with both the existing project management business and certain members, particularly (Ideal Sun City executive chairman) Datuk Ooi Kee Liang and (Ooi’s wife and Ideal Sun City executive director) Datin Phor Li Wei, will spearhead the new business of property investment holding,” it said.

Ideal Sun City shares shed half a sen to close at 47 sen on Thursday.