KUALA LUMPUR: Ivory Properties Group Bhd has inked a memorandum of understanding (MoU) with Taman Segar Management Corp (TSMC) and Upper Lable Sdn Bhd to build about 800 units of apartments in Cheras, making its foray into the affordable housing segment in Kuala Lumpur.
Ivory Properties project advisor Javin Chua (pic) said under the development plan, Ivory Properties will demolish the 35-year-old three blocks of apartments occupied by the 300 residents of Taman Segar and construct 800 units on the 4.456-acre site.
Located along Persiaran Lemak in Cheras, the land has a market value of RM400 to RM500 per sq ft, according to Ivory Properties.
“At this stage, the purpose of signing the MoU was to have an understanding with Taman Segar residents to proceed with an application to Kuala Lumpur City Hall (DBKL).
“So, although this is still subject to DBKL’s approval, officially, the city hall has responded stating that we will be constructing three blocks of apartments with 800 units, measuring 800 sq ft each,” he said on the sidelines of the MoU signing yesterday.
Under the salient terms of the Mou, the developer will award 300 units to residents as compensation.
Upper Label was appointed by TSMC as the project owner to explore and coordinate the redevelopment plans with the authorities and Ivory Properties.
Chua said the group hoped to sell the remaining 500 units at about RM300,000 per unit, with an estimated gross development value of RM150mil.
“However, we are hoping that the city hall will allow us to build more units,” he said, adding that the project was slated for completion in five year’s time.
Ivory Properties has so far completed 13 property projects with GDV of more than RM1.7bil.
In the meantime, taking into account the soft property market, Chua said the group has set a sales target of RM500mil for 2017, with the focus on selling more houses to foreigners.
Ivory Properties’ ongoing projects in Penang include among others Penang Times Square and Island Resort, apart from projects in Sungai Besi and Taman Connaught in KL that it was currently pursuing with an estimated GDV of RM1.2bil.
Currently, the developer is building 1200 units of affordable homes with joint venture company Tropicana Ivory Sdn Bhd at its RM10bil GDV Penang WorldCity project in Bayan Mutiara.