This is in line with the group’s overall strategy to aggressively expand its property development segment, said Chiau.
KUALA LUMPUR: Bursa Malaysia-listed company Chin Hin Group Property Bhd (CHGP) aims to generate RM3.73bil from on-going and future developments in the next two years.
CHGP is spending RM268mil to acquire 81.9 acres of land for five different property projects situated in the Klang Valley.
“We intend to expand our portfolio of developments to various growth corridors in the Klang Valley such as Serendah, Bandar Kinrara, Bangsar South, and Cyberjaya,” said CHGP executive director Chiau Haw Choon.
The types of developments that are being proposed include townships, serviced apartments, mixed-use developments and offices.
“With the increasing prospect of effective Covid-19 vaccination this year, there is optimism that the property market will see a turning point soon. On top of that, historic low interest rates and various homeownership incentives will certainly bring some vibrancy to the market.
“As noted by Rahim & Co in its Property Market Review 2020/2021, the property market will most likely gain momentum by year 2022. As a developer, this is a good time for us to seize opportunities with the currently attractive land prices and expand our landbank at strategic locations.
“This will ensure that the Group has a clear and sustainable growth plan ahead. We are targeting to launch these properties in one to two years’ time in line with the expected recovery of the property market,” said Chiau.
A filing with Bursa Malaysia on Feb 8 showed CHGP’s latest proposal to acquire an 11.53-acre land in Cyberjaya for RM50.22mil, as part of the group’s continuous efforts to replenish its landbank at better and accessible locations for potential development.
Barring unforeseen circumstances, the acquisition is expected to be completed by the second quarter of 2021.
“Estimated to generate RM1.1 billion in GDV (gross development value), CHGP has proposed to construct a mixed-development on this freehold land that is currently vacant.
“We chose this because of its strategic location in Cyberjaya which has seen significant development over the years driven by the investment and presence of global tech companies, prevalence of universities and other amenities, and well-planned infrastructure.
“The proposed acquisition to build up the land bank and property development pipeline of CHGP is expected to contribute positively to the group in the next five years and improve its earnings visibility,” he added.
CHGP has two ongoing projects. Aera Residence is a serviced apartment project in Petaling Jaya with a GDV of RM332mil while the RM470mil 8th & Stellar is a two-tower mixed-use development comprising serviced apartments, duplex lofts, office space and shoplots on a 2.2-acre leasehold tract in Sri Petaling.
The take-up rate for both projects currently stands at 98% and 69% respectively.
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