New project: IOI Properties plans to begin construction of phase two of IOI City Mall with an investment of RM500mil and construction by year-end.
PUTRAJAYA: IOI Properties Group Bhd is on track to achieve its RM2bil sales target for the financial year ending June 30, 2016 despite the softening property market.
Chief executive officer Lee Yeow Seng said the group had already achieved more than RM1bil in sales from various projects including in China and Singapore.
“The project in China is selling very well and our overseas projects have contributed quite significantly, about 30% to 40% to group sales, while a number of local projects will make up the remainder,” he said.
Speaking after its EGM, Lee said the group’s unbilled sales currently stood at around RM1.5bil and these were expected to be realised within one-and-a-half years to two years.
The group currently has not less than 10 ongoing projects worth some RM2.5bil, 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 RM1.26bil and NPSB for RM319.83mil saw the injection of the Lee family’s private land within IOI City Resort totalling 161.75 ha 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 RM500mil and construction would begin by year-end.
The design of the four-storey retail outlet with an additional one million sq ft 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 had achieved occupancy rate of 93%.
“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’ land bank now stands at around 4,047 ha. — Bernama
