SHAH ALAM: WCT Bhd expects to start work on its RM4bil mixed development project on an strategically-located site in the vicinity of Kuala Lumpur in 2014.
Deputy managing director Goh Chin Liong said the project would be done phase by phase over a period of 10 years.
“Development will go in tandem with the market outlook,” he said after the company’s EGM.
The project will mark the company’s first development foray in Kuala Lumpur after having completed several projects in the Klang Valley, including its flagship township Bandar Bukit Tinggi in Klang.
At the EGM, shareholders approved the company’s RM450mil acquisition of the said land in the Overseas Union Garden (OUG) area.
“This piece of land had been in the market for some time, and there had been some negotiations. We are interested in more if the price and location is right,” Goh said, adding that the company would fund this via RM150mil in internal-generated funds and the rest via bank borrowings.
He said the plus point of the location was the accessibility via the Kesas Highway and the Maju Expressway. It is also connected via the Sri Petaling LRT station and another soon-to-be-constructed LRT station under the Ampang line LRT extension.
WCT will be acquiring the land via the purchase of the entire equity interest in Timor Barat Properties Sdn Bhd, which owns three parcels of land totalling 23ha.
“The acquisition is still subject to the relevant authorities’ approvals. We expect the exercise to complete in three to six months. Our immediate focus would be to develop this huge piece of land,” he said.
Goh also said the company was in the midst of developing another township development in Rawang with a gross development value of RM1.5bil.
The project, comprising mainly medium to medium-high-priced properties, is set to be launched in 2014.
WCT currently has a outstanding construction order book amounting to RM3.5bil, and another RM6bil in outstanding property development.
“If we take in consideration the GDV of both Rawang and OUG, it would be RM11bil, which would last us for a period of 10 to 15 years. It will be taken into account once the acquisitions are completed,” he said.
Meanwhile, the company would be starting construction work on the second phase of its Paradigm project, which would include a hotel and office elements to compliment the existing shopping mall.
“We have just opened the Paradigm mall, and occupancy rate is now at 92%. We expect a normalised contribution of about RM10mil to RM15mil to our net profit,” he said.
Among its anchor tenants are Tesco, Golden Screen Cinemas, Padini Concept Store, Marks & Spencer, Zara, Elle, G2000, Harvey Norman, Toys R’ Us, Popular Bookstore, TGI Friday’s, Starbucks, and Chili’s.
Source by: The Star
Picture by: ychallenge2011