GEORGE TOWN: Property developer Ideal United Bintang International Bhd is targeting to complete the acquisition of RM1.4bil worth of residential property projects in Penang from Ideal Property Group by the first quarter of 2019.
The projects – Imperial Grande, Imperial Ville and the Amarene and Mori condominium schemes – are planned for development in Sungai Ara and Bayan Lepas on the island.
Ideal United executive chairman, Tan Sri Alex Ooi Kee Liang, has expressed his confidence in the prospects of the group’s latest acquisition, which comprises mid-range condominiums priced between RM500,000 and RM700,000 per unit. Ooi, who has been dubbed “the Penang Condo King” by the housing sector, told StarBiz, “I believe there is still stable demand for strategically located mid-range residential properties.
“This is despite the moderate outlook for Malaysia’s economy and the softening of the property market in Penang.”
He pointed out that both Ideal United’s current projects and the ones the group is proposing to acquire are located in the south-west district, which is close to Penang island’s first and second bridges, the free industrial zone as well as the Penang International Airport.
Furthermore, the properties in the south-west district are also priced much lower than those located in the George Town area, added Ooi.
On the group’s performance, he said: “We are targeting over 100% growth in revenue as well as a significant improvement in net profit for the current financial year ending Dec 31, 2018 (FY18).”
Ooi noted that the group’s revenue for the first nine months of FY18 of RM246mil had surpassed the FY17 group revenue by 105%.
Currently, Ideal United has unbilled sales totalling RM764.8mil from the Forest Ville, One-Foresta and i-Santorini projects in Penang.
“Based on the unbilled sales, the target of over a 100% increase in revenue is achievable,” said Ooi.
The Forest Ville project is 56% completed, while the One-Foresta and i-Santorini projects are 91% and 73% completed.
As of Dec 31, 2017, Ideal United’s total assets stood at RM311.5mil, which was an increase of about 40% compared with the previous corresponding year.
The group, which is debt-free, has a working capital of RM115.9mil, said Ooi.
Moving forward, he said Ideal United would focus on selling more affordable homes.
Its subsidiary, I-Global Property Network Sdn Bhd, is currently building 1,343 affordable homes and 991 condominium units.
Ooi added further that “when the timing is right, the group would explore property development opportunities in Asia”.
Both Ooi and Datuk Joanne Phor, who is an executive director in Ideal United, currently hold a 54% stake in the company through their shareholdings in ICT Innotech Sdn Bhd.
Ooi and Phor also serve as executive chairman and executive director in Ideal Property Group.
Ideal Property is currently developing several projects in Bayan Lepas, including the Queens Waterfront, Sunsuri and the Maldives condominium schemes, and the Bayan Baru City Centre, a mixed-development project with a combined gross development value of RM5.14bil.
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