GEORGETOWN: Ideal United Bintang International Bhd plans to develop a RM600mil mixed-development project in Balik Pulau, Penang, at the end of 2020.
Group executive chairman Tan Sri Alex Ooi said the project was in line with Ideal United’s expansion plans.
The property developer has recently acquired Ideal Greencity Sdn Bhd as its wholly-owned subsidiary for the purpose of venturing into new projects.
Ooi said Ideal Greencity would work with Koperasi Kampung Melayu Balik Pulau Bhd to develop the multi-phased integrated development in Balik Pulau.
“The project, to be located on an 88-acre site, will house a proposed mixed development of two blocks of condominium, two blocks of low-cost apartments, double-storey bungalows, double-storey semi-detached houses, and double-storey terrace houses, ” he said.
“A private hospital, retail shops as well as a bazaar are included in the plans to enhance the overall value of this mixed development project, ” he added.
Located at the southwest of the island, the Balik Pulau town is also the administrative centre of the Southwest Penang Island District.
“The group is confident of receiving positive response to the project and Ideal United hopes to directly or indirectly strengthen the future growth and development of Balik Pulau town.
“The gross development value of the development is estimated at RM600mil, ” Ooi said.
“This additional land bank will contribute significantly to the group’s results in the near future, ” he added.
Going forward, Ideal United has sufficient land banks to carry out development projects over the next 10 years.
“With the right marketing strategies and good locations, the take up rate had been encouraging for the group despite the current sluggish scenario in the local property industry. Currently, Ideal United offers a wide selection of high rise residences to its different categories of buyers which includes affordable homes as well as condominiums, with prices ranging from RM350,000 to RM700,000, ” Ooi said.
For the second quarter ended June 30, Ideal United posted a net profit of RM18.4mil, representing an increase of 18.1% from RM32.4mil recorded in the preceding quarter. The group, however, registered lower revenue of RM146.9mil, down 24.5% from RM194.7mil.
Ooi attributed the group’s earnings growth to the steady progress of construction works of I-Santorini and Forestville projects, which ha achieved 98% and 84% completion respectively. On its prospects, Ideal United expected the property development sector to contribute further to the revenue and profit of the group for the financial year ending Dec 31.
Ideal United had proposed a first interim dividend of one sen per share. Its shares were last traded at RM1.49, up two sen, last Friday. — By DAVID TAN