GAMUDA Land Sdn Bhd is looking to extend its lifestyle developments outside its stronghold, the Klang Valley, to new growth markets in Penang and Johor Baru.
The property development arm of GAMUDA BHD sees good opportunity to take its brand of lifestyle homes to these markets to meet the growing demand for quality houses within well-planned resort environments.
Gamuda Land executive director Chow Chee Wah said the reputation of the company’s property offerings and the premium attached to its projects would stand the company in good stead in reaching out to a wider market segment.
“We are looking to replenish our land bank in strategic locations, preferably those with the right land size of not less than 200 acres, for integrated lifestyle developments,” he said in an interview with StarBiz.
While the Klang Valley continued to be the most robust property market, he said, the company was confident of making a difference by bringing new and innovative township concepts to the other promising markets.
“Wherever we are present, our aim is to create a difference and improve the community’s quality of life. From the inception stage of our projects, the focus is to plan for a healthy and quality environment that blends in with their surroundings,” he added.
Of the company’s land bank of 3,376 acres, a total of 1,286 acres have been developed for a total gross development value (GDV) of RM4.1bil. The remaining undeveloped land of 1,090 acres is expected to yield a GDV of RM3.3bil over the next six years.
Gamuda Land’s three ongoing developments are Kota Kemuning on 1,854 acres, Bandar Botanic (1,242 acres) and Valencia (280 acres).
The Kota Kemuning project, which is undertaken jointly with DRB-HICOM BHD, will take another five years to complete while Bandar Botanic will take six more years and Valencia four years.
Since it made its debut with the launch of its maiden development, Kota Kemuning, in 1995, Gamuda Land has made remarkable progress and has earned the status as a premier lifestyle developer. Its properties are able to fetch a premium of between 10% and 20% in terms of pricing.
Chow said contribution from property development to Gamuda Bhd had been on the uptrend.
For financial year ended July 31, 2004, it accounted for 24% of the group's net earnings. It has unbilled sales of RM700mil that would be realised over the next two years.
“With the expansion of our land bank and the launch of more exciting lifestyle projects, we expect earnings from the property division to improve steadily in the coming years,” he said.
In the last eight years, the company has sold 14,000 homes for a total GDV of RM4bil, with a take-up rate of 90% for all its projects.
“With the growing market for homes within well-planned lifestyle environment, we are confident of further raising the profile of Gamuda Land brand of premier homes and moving the company up the property industry ranks,” Chow added.
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