UNITED Malayan Land Bhd (UM Land) expects to generate RM80mil from sales of its Seri Bukit Ceylon serviced apartments in Kuala Lumpur.
We hope to register RM5mil in sales from progress billings this financial year, its chief executive office Ismail Abd Halim said.
He was speaking at a press conference in Kuala Lumpur last Friday after the signing of an agreement between Ascott International Management (M) Sdn Bhd and UM Residences Sdn Bhd, a wholly-owned subsidiary of UM Land, to jointly operate serviced residences under the Somerset brand in KL.
Under the agreement, the Ascott group will manage 96 of the total 247 units in the 25-storey building. The group owns half of the units it will be managing.
Buyers of the other 48 units will come under a compulsory leaseback agreement with us where they will be getting guaranteed returns of 6% for the first three years. Beyond that, there is no guarantee as we expect the brand to be well established by then, Ismail said.
He said there was a niche market for serviced apartments within the city centre and expected the development to enjoy a high occupancy rate in view of its location along Lorong Bukit Ceylon, which is within the city's Golden Triangle and a five-minute walk to the Bukit Bintang shopping and entertainment belt in KL.
With a minimum price tag of RM217,880, the Seri Bukit Ceylon development is expected to be completed in the fourth quarter of 2004.