Penang, Johor growth spurs Dijaya

Property News/ 15 February 2012 Leave a comment

PETALING JAYA: Dijaya Corp Bhd wants to build up its market presence in Johor and Penang, and expects to see a bigger contribution from the two growth markets.

Although the central region of Selangor is still the biggest contributor accounting for more than 70% of the company’s sales and bottomline, Dijaya managing director Datuk Tong Kien Onn is looking at bigger contribution from the northern and southern regions.

“We want to build a stronger presence in these two markets to take advantage of the strong growth in Penang and Johor,” Tong told StarBiz.

Over the next two to three years when the projects started to move, he said contribution from Selangor was expected to drop to about 40%.

Dijaya plans to launch RM1.1bil worth of projects this year compared with about RM700mil last year. For 2012, it is targeting sales of between RM650mil and RM700mil. Last year, it sold about RM420mil worth of properties.

In Johor, Dijaya has two joint ventures with Iskandar Waterfront Sdn Bhd for projects in Danga Bay.

The first project, Tropicana Danga Bay on 37 acres is a 60:40 joint venture between Dijaya and its partner. The project under the joint venture company, Global Corporation Sdn Bhd is located only about five minutes to the Johor-Singapore Causeway. The land was purchased at a cost of RM318mil about 1½ years ago.

Tropicana Danga Bay with expected gross development value (GDV) of RM3.8bil will comprise 60% commercial and 40% residential components. It will take eight to 10 years to complete. The first phase comprising a block of 420 service residences was launched last December at average prices of RM620 per sq ft. Tong said about 90% of the non-bumi lots have been sold to-date.

Dijaya also has a 50:50 joint venture with Iskandar Waterfront Sdn Bhd to undertake the 225 acre Tropicana Danga Cove. The land was bought for RM220mil in the last quarter of 2011.

The RM2.8bil development is expected to take 10 to 12 years. Construction of the project may kick off in March with the first phase comprising 3-storey shop offices.

In Penang, Dijaya has set up a 55:45 joint venture with Ivory Properties Group Bhd to buy and develop a 41.02ha site in Bayan Mutiara. The joint venture company, Tropicana Ivory Sdn Bhd paid RM1.07bil for the land and the repayment period will be over five years.

Tropicana Ivory will undertake a mixed residential and commercial property project with GDV of RM9.8bil over the next eight to 12 years.

Last Thursday, Dijaya received the nod from its shareholders to enter into the joint venture with Ivory Properties.

Tong said the master plan for the Penang project would be finalised in the next two to three months and the mixed integrated development is set to showcase some iconic structures.

Meanwhile, in Selangor, projects in the pipeline this year will comprise two new projects in Tropicana Indah Resort Homes namely Golf Villas and Tropicana Garden.

In Subang, Dijaya plans to build three-storey link, semi-detached and bungalow houses, condominiums as well as commercial development on its 35.4ha landbank.

Also in the pipeline will be bungalows, link houses and semi-detached units at Tropicana Cheras and Tropicana Balakong.

SOURCE: The Star

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