BY JACK WONG
Chew: ‘We have planned a high-rise commercial and residential development there.’
KUCHING: Property developer Ibraco Bhd is spreading its wings to Peninsular Malaysia with a planned maiden mixed commercial cum residential project in a strategic area in Kuala Lumpur.
Managing director Chew Chiaw Han said the proposed development would be on a piece of vacant land which Ibraco was expected to acquire in two weeks.
Under a sales and purchase agreement inked in March 2015, Ibraco will pay RM55mil in cash to Bandar Park Sdn Bhd for the 5,825 sq m freehold land, which fronts Jalan Tun Razak and Jalan Loke Yew.
“We have planned a high-rise commercial and residential development there,” Chew told StarBiz, adding that details were being worked out.The company targets to kickstart the project later this year.
Ibraco has budgeted RM19.55mil from part of the proceeds of the company’s proposed renounceable rights issue to finance the project.
The proposed rights issue involves the issuance of some 50.65 million new shares priced at RM1 each on the basis of two rights shares for every five existing shares. Ibraco closed at RM2.03 on Friday against its 52-week high of RM2.06.
The fund raising exercise is expected to raise RM50.65mil,of which RM30mil would be utilised to pare down Ibraco group’s bank borrowings of RM100.3mil.
Bursa Malaysia approved last week the listing and quotation for the rights shares.The exercise is expected to be completed in the third quarter of 2015.
Ibraco, the city’s largest developer which has built and sold more than 10,000 residential and commercial properties here, ventured into Bintulu three years ago with an integrated mixed development project named “Bintulu Town Square” with a gross development value (GDV) of over RM600mil.
The project, which is undertaken with joint-venture partner - Bintulu Development Authority - involved 74 three-storey shophouses and one block of shops in phase 1.
Phase 2 to be launched soon would comprise 200 medium-cost apartments, high-rise condominium units, a mall, shophouses and other components.
According to Chew, Ibraco’s flagship development - Tabuan Tranquility - along Kuching-Samarahan Expressway, is progressing into the tail-end of its five year development plan. Out of the total 70ha, some 60ha has been or is being developed for residential and commercial properties.
He said the final phase would comprise double-storey terraced houses and detached lots as well as 100 commercial properties.
Chew said this integrated development with GDV of RM520mil had locked in unbilled sales of some RM224mil. The Tabuan Tranquility was instrumental in “rescuing” Ibraco from its Practice 17 (P17) status. Riding on the success of Tabuan Tranquility, Ibraco will next develop 49.8ha in Greater Tabuan area for offices, SOHOs, apartments, retail outlets and shop offices.
Ibraco’s another on-giong project - Stutong Heights - offers 497 apartment units, out of which some 85% have been taken up, recording unbilled sales of RM77mil.
