KUCHING: Property developer Ibraco Bhd plans to kick-start its second project in Peninsular Malaysia next year. The new project will be on a leasehold land on Bandar Petaling Jaya Selatan, which Ibraco acquired for about RM37.4 million last year.
Measuring 15,811.66 sq m, the land is approved for mixed commercial development.
In releasing its third quarter ended Sept 30, 3019 (Q3-2019) financial results, Ibraco said it has, riding on the success of ContiNew Kuala Lumpur project, continued to venture in the peninsula with the newly acquired land.
“The group aims to kick off the development in 2020, taking into consideration the revision of statutory requirements and the market needs,” it added. The company has not, however, provided details of the proposed development.
The ContiNew Kuala Lumpur is a mixed development that consists of two residential towers, sitting above a commercial space comprising four units of three-storey commercial/retail shops, 30 units of retail/office spaces and 510 units of service apartments.
This on-going project has an estimated gross development value (GDV) of RM400 million. In Q3-2019, Ibraco group recorded a lower net profit of RM6.45 million from RM8.62 million in Q3-2018 despite a sharp increase in revenue to RM101.1 million from RM73.48 million or by 38 percent. Earnings per share was lower at 1.3 sen from 1.74 sen.
The revenue was derived mainly from the sales of small office home office (SOHO) and SOHO commercial at Tabuan Tranquility here and Bintulu Town Square, sales of ContiNew’s apartment suites, sales of residential houses at The NorthBank Nova 72 and sales of condominiums at the Park Residence.
Revenue was also recognised from sales of apartments at Stutong Heights, office building at The NorthBank and The Northbank Business Exchange, construction of the Mukah new airport project as well as rental incomes from investment properties.
Over a nine-month period, Ibraco group registered flat net profit of RM16.1 million against RM16 million in the corresponding period of 2018 while revenue jumped by 50 percent to RM232.6 million from RM155.3 million.
On prospects, Ibraco expects its financial results to upsurge in the coming quarters as the group has RM283.47 million unbilled sales and outstanding order book of RM163.73 million as at Q3-2019.
On The NorthBank project, the company said it launched the Avona development — the first significant landmark to light the skyline of the group’s new avant-garde township — in June this year.
Avona comprises of two 12-level towers of 298 units of serviced apartments, of which 80 percent were sold in the first week of launch.
Besides the Mukah airport project, Ibraco subsidiary, Ibraco Construction Polybuilding Construction JV Sdn Bhd is currently undertaking a RM44.89 million project for the design, construction, completion, testing and commissioning of Package NR4 (northern region) for Sarawak Water Supply Grid Programme. The project is scheduled for completion within 22 months from June 12, 2019.
Ibraco said the group’s total loans and borrowings have increased by RM22.57 million from a year ago due mainly to drawdown of financing facilities for several on-going projects. These are the ContiNew, construction of Tunku Putra-Help International School, the group’s corporate office and Mukah airport.
