IOI Properties Group Bhd chairman Tan Sri Lee Shin Cheng
PUTRAJAYA: IOI Properties Group Bhd
is on track to achieve its RM2 billion sales target for the financial year ending June 30, 2016 despite the softening property market.
Its chief executive officer Lee Yeow Seng said on Monday the group had already achieved more than RM1 billion in sales from various projects including those in China and Singapore.
"The project in China is selling very well and our overseas projects have contributed quite significantly, about 30 to 40 per cent to group sales, while a number of local projects will make up the remainder," he said.
Speaking to reporters after the extraordinary general meeting (EGM) here today, Lee said the group's unbilled sales currently stands at around RM1.5 billion and these were expected to be realised within one-and-a-half years to two years.
The group currently has not less than ten ongoing development projects worth some RM2.5 billion, he added.
On the EGM, Chairman Tan Sri Lee Shin Cheng said IOI Properties' minority shareholders had given the nod for the acquisition of the entire stakes in two companies -- Mayang Development Sdn Bhd (MDSB) and Nusa Properties Sdn Bhd (NPSB).
The acquisitions of MDSB worth RM1.26 billion and NPSB for RM319.83 million saw the injection of the Lee family's private land within IOI City Resort totalling 161.75 hectares into IOI Properties. The acquisitions are paid for by cash and shares.
Following the acquisitions, Lee said the group would immediately start with phase two of IOI City Mall with an investment of RM500 million and construction would begin by year-end.
The design of the four-storey retail outlet with an additional one million square feet of rental space was ongoing and expected to be completed in two to three years, he said.
He said phase one of the shopping mall was well received and achieved occupancy rate of 93 per cent.
"Some 30 years ago, this place is in the middle of nowhere and nobody would have thought this area would have a shopping mall.
"Now with the mall and other properties this area will grow faster, " Lee said.
With the completion of the acquistion, IOI Properties' landbank had been expanded and now stands at around 4,047 hectares. - Bernama
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