The serviced suite development is under the first phase of Splash Park in Port Dickson. The photo shows a model of Splash Park Suites and water theme park.

KUALA LUMPUR: Property developer Tanco Holdings Bhd targets to rake in RM140mil in sales for its serviced suites at its water theme park, Splash Park, in Port Dickson, Negri Sembilan.

Group managing director Andrew Tan Jun Suan said to-date the company had secured sales of about RM90mil for the project.

“The serviced suite development is under the first phase of Splash Park comprising two blocks with a gross development value of RM300mil,” he told reporters after the company’s AGM on Wednesday.

He said the company had completed the ground works for the first phase and had started works on the sub-structure this month, and the project was slated for completion in the next 27 months.

Tan said Tanco was also targeting foreign buyers as the company was granted a special exemption by the state government for resort/hotel-based properties which did not compete with standard property for the locals.

“We believe investment for leisure-based property are structured to be more stable and would yield better revenues,” said Tan.

Splash Park, spread over 9.2ha, will also feature the largest Play Ship in Malaysia, a hotel and an 18-hole golf course.

On another development, he said the company was also in the planning stage to develop its landbank in Kuantan, Pahang and Terengganu into similar resort/hotel projects.

On property outlook next year, Tan said the market would likely be driven by sentiments and policies, even though the underlying fundamentals of the country’s economy remained strong.

“We will be taking a conservative step by being in a flexible position and keep a close tab on the property market due to the current economic environment.

“We don’t believe it’s the right time to be aggressive and we will ‘travel’ lightly and be ready whenever market sentiment changes.”

Asked on the higher administrative cost recorded in its first quarter (Q1) ended Sept 30, 2015, Tan said it was due to cost and operating expenses captured for Splash Park as revenue would only be recognised later as the project progresses.

Tanco incurred a pre-tax loss of RM3.2mil for Q1 compared with a loss of RM4.9mil in the same period a year ago.

Revenue was higher at RM906,000 versus RM612,000 previously. - Bernama