BY INTAN FARHANA ZAINUL
GROUP chief executive officer Datuk Yau Kok Seng said that for this year, Tropicana planned to launch property projects worth RM1.6bil, focusing on landed residential houses, shop houses and high-rise affordable homes.
“The affordable home segment is new for the group. For the pilot project, we are targeting to launch 766 units this year,” he said after the company’s AGM.
He added that over the next two years, Tropicana aimed to build 3,000 homes priced below RM500,000 at its existing townships, Tropicana Aman in Kota Kemuning and Tropicana Heights in Kajang.
“The market demand at the moment is landed houses as well as urban affordable homes,” Yau said.
The affordable home segment, dubbed as “urban affordable homes”, would consist of strata-title apartment units with sizes ranging from 650 to 1,000 sq ft.
On Tropicana’s planned property launches for this year, Yau said the focus would be on the Klang Valley, especially for landed properties.
“About RM300mil of property launches is in Johor. Our launches for this year is focusing on landed properties and terrace houses,” he said.
Yau pointed out that Tropicana is also looking to expand its recurring income by focusing on international schools.
Currently, the group’s property investment portfolio includes St Joseph’s Institution International School Malaysia, GEMS International School, Tenby International School, as well as the introduction of a new mall and offices at Tropicana Gardens.
“Our investment in education will provide a good recurring income to the group, moving forward.
“Education is a key component in our integrated townships. We will be tying up with good international school brands for our future projects,” Yau said.
Tropicana posted a stellar first-quarter results ended March 31, 2016, that saw its net profit more than doubled to RMRM32.52mil from RM15.17mil a year ago.
Its revenue for the quarter grew 33% to RM381.9mil from RM286.9mil previously.
The group attributed the growth in its topline and bottom line to strong sales in property projects and advanced progress of construction works at many of its ongoing projects.
Yau said Tropicana is looking for potential partnerships to develop some of its 1,283 acres of land bank.
“As property development is our core business, we are looking at strategic investors to join in as partners to fast track the development of our land bank,” he said.
He said about 70% of the group’s land bank is located in the Klang Valley.
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