KUCHING: Property developer Ibraco Bhd has reduced considerably its unsold properties as its new sales strategy has boosted sales.
Managing director Datuk Chew Chiaw Han said the group’s inventories had fallen to RM55.9 million in 2018 from RM87.9 million in 2017 or down by about RM32 million or 36 percent.
“The changes in sales approach to the purchasers have brought along better sales performance for the inventories.
“And the group is confident to clear these unsold properties with the implementation of mega projects under the Sarawak Corridor for Renewal Energy (SCORE) development plans in Bintulu as well as road upgrading works along Kuching-Kota Samarahan Expressway by the government,” he added in the company’s 2018 annual report.
Chew did not, however, give a breakdown figures on the unsold properties. The group has major developments comprising residential and commercial properties here and in Bintulu.
He said the challenging property market environment that prevailed throughout 2018 had made the group revised some of the approved development plans to incorporate current market needs.
“The time taken for approval of the revised plans had caused a delay to the launches particularly to the next flagship development – The NorthBank.
“Nevertheless, with the success of the overwhelming response from the launch of first phase of The NorthBank, Nova 72, the group is confident of encouraging response for the remaining phases,” he added.
Nova 72, which has a GDV of RM81 million, consists of 50 units of double-storey terraced houses, 14 units of double-storey semi-detached houses and eight units of three-storey semi-detached houses.
Covering 123 acres, The NorthBank is located right opposite Ibraco’s first flagship development Tabuan Tranquility, which is currently in its final phase of development.
Chew said over RM260 million worth of gross development value (GDV) in projects in The NorthBank would be launched this year. These projects include commercial lots, apartments and townhouses.
“The NorthBank offers purchasers with choices of various types of residences built with a walking distance to commercial, office units as well as a social clubhouse.
“In addition to that, Tunku Putra-HELP International School, which is now under construction and expected to commence (operation) by January 2020, is also sited at The NorthBank,” he added.
The international school project is a joint venture between Ibraco, HELP Education Services Sdn Bhd and CMS Education Sdn Bhd.
Chew said the group believes that this international school would not only enhance its source of income but also the value of surrounding developments within The NorthBank.
On Tabuan Tranquility’s final phase development, he said this involves 167 units of small office home office (Soho) launched in fourth quarter-2016 with GDV of RM64 million and lock-up retail outlets within the Soho development launched in May 2017.
Construction of a proposed education block there is expected to commence upon conclusion of a higher institution operator.
On Ibraco’s maiden project in Bintulu called Town Square Bintulu, Chew said phase two development which was launched in early 2016 comprises 13-storey of 158 Soho units with lock-up retail outlets with an estimated GDV of RM69 million.
The completed phase one project comprises 75 units of three-storey shop offices, two-storey of lock-up retail plaza and an eight-storey office block, which is the first MSC Malaysia Cybercentre in the industrial town.
In Peninsular Malaysia, Ibraco’s on-going maiden project is a mixed development that consists of two residential towers on top of a commercial space comprising four units of three-storey commercial/retail shops, 30 units of retail/office spaces and 510 units of serviced apartment. The project called ContiNew Kuala Lumpur is estimated to have GDV of more than RM400 million.
“Riding on the success of ContiNew Kuala Lumpur, the group has acquired 15,811.66 square meter leasehold land located at Bandar Petaling Jaya Selatan, Daerah Petaling and fronting on Baru Pantai Highway (the land) for aggregate consideration of RM37.44 million.
“The land is approved for mixed development and is expected to launch in 2020, with an estimated GDV of RM320 million for residences ranging from 552 to 1,000 square feet.
“The group is confident that the land will enhance the future earning potential of the group and its presence in West Malaysia,” said Chew.
Ibraco group is also involved in construction business and is currently involved in the construction of the new Mukah Airport project. The RM302.6 million project is scheduled for completion in second-half 2020.
According to Chew, Ibraco is actively bidding for government construction and infrastructure projects to diversify the group’s source of income.
In financial year ended Dec 31, 2018, Ibraco group revenue surged to RM239 million from RM129.8 million in FY2017 while group pre-tax profit climbed to RM41.8 million from RM18.5 million year-on-year.
The group’s loans and borrowings increased by 36 percent to RM246.3 million from RM180.6 million during the same period due to financing for the construction of the Mukah Airport project and acquisition of land in Bandar Petaling Jaya Selatan.
Chew said with unbilled sales of RM269.3 million and outstanding order book of RM205.4 million, the group is confident to maintain its financial results in FY2019.
