IJM Land to launch properties worth RM1bil

PETALING JAYA: IJM Land Bhd, the listed subsidiary of construction firm IJM Corp Bhd, plans to launch over RM1bil worth of properties in the financial year ending March 31, 2010 (FY10).

So far, according to managing director Datuk Soam Heng Choon, major launches include The Light Linear in Penang with a gross development value (GDV) of RM200mil, Nusa Duta in Johor with a GDV of RM78mil and existing phases of Seremban 2 with a GDV of RM32mil.

He said the company would launch more than 20 projects in FY10. Last year the company launched RM600mil worth of properties.

Meanwhile, IJM Land chairman Datuk Krishnan Tan said recent launches especially in Penang had been very well received by the market. “We’re looking forward to better times in line with market sentiments,” he told reporters after the company AGM yesterday.

However, Tan cautioned that these launches, which would involve the company’s existing and new projects throughout the country, would very much depend on economic conditions. “The realistic approach is to see how fast you can run in the time given and at the same time have a clear view of the horizon,” he said on how the company would weather another economic contraction.

Tan said the major obstacle was if consumer sentiment fell should the jobless rate in the country rise on a less rosy economic outlook. “Let’s hope there’s no double dip,” he said referring to the country’s economic performance.

Tan said conditions going forward were bright with ample liquidity and lower interest rates while expectations of increasing property costs brought on by higher building material and land prices would also spur the market.

On overseas projects, he said IJM Land would spearhead future projects of the group. Tan, who is also chief executive officer and managing director of IJM Corp, said over time IJM Land will take over projects now under the IJM Corp umbrella.

He said there were plans to revive Talam Corp Bhd’s Changchun, China mixed development project, in which IJM Land has a 50% interest, with a launch slated for next year. The project is located in China’s automotive city and has an estimated GDV of RM500mil.

IJM Corp has a 25% stake in Kumpulan Europlus Bhd, the holding company of Talam. Tan said IJM Land was still scouting suitable sites for a project in Vietnam with Ho Chi Minh City as the most viable location.

He said the company had an undeveloped landbank of 5,300 acres with a potential GDV of RM18bil over a 15-year period.

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