SHAH ALAM: I-Bhd’s diversification into property and leisure segments since 2010 has started bearing fruit in light of the current challenging property market in the country.
Deputy chairman Eu Hong Chew said the property developer aims to hit a revenue contribution of RM300 million from the two segments in the next five years.
“Property development will be complemented by investment property and leisure segments. We see growth potential in these segments to have sustainable recurring earnings due to tourism attractions and encouraging demand from residents,” he said after the company’s shareholders meeting today.
Currently, the company’s property development division contributed about RM75 million to the group.
Eu said I-Bhd has completed about 40 per cent of the total 13 million sq ft approved built-up area in i-City, while constructing another 20 per cent area (second phase) for mixed developments residential and commercial.
“There will be considerable property investments in the coming five years with the aim to establish RM1 billion investment property portfolio.
“Among the developments include the second convention centre and the DoubleTree by Hilton which will be completed in 2021,” he added.
He said the group also planned to upgrade and relocate its theme park rides and attraction sites to attract more visitors as well as to free up land for property development.
“We also plan to launch RM800 million worth of residential (RM560 million) and commercial (RM230 million) projects in the next six months.
“We think the market will pick up as the demand would still be there for property in Malaysia,” he said, adding that i-City is the heart of Selangor’s Golden Triangle that can be positive for the group with a strong validation of its technology-based focus.
“i-City’s conscious adoption of technology in pushing beyond its current RM10 billion gross development value footprint. The value of our investment properties would be enhanced by being located within the Golden Triangle, which in turn give spillover effects to he hospitality, retail and leisure businesses,” he said.
Eu said there were ample oppression for i-City to continue contributing to the economic development and prosperity of Selangor to cement its position as the heart’s of the Golden Triangle, in realising Selangor as the smart city by 2025.
Recently, I-Bhd launched the largest shopping mall in i-City with the aim to transform the retail experience in Selangor, targeting to more affluent shoppers.
The RM850 million Central i-City mall is a 60 per cent owned and managed by Thailand-based Central Pattana Plc, while the remaining 40 per cent owned by I-Bhd.
The mall will be augmented by 150,000 sq fr of centralWalk high-street retail, offering lifestyle altering experiences to visitors patronising i-City.
It also provides others facilities include leisure park, convention centre and hotel.
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