Fajarbaru targets 20% of RM5b construction bids this year

By IZZAT RATNA

Fajarbaru Builder Group Bhd is bidding for infrastructure contracts worth RM5 billion this year.

Group ED Eric Kuan Khian Leng said the property and construction firm is aiming to secure at least 20% of the construction deals that it is bidding for in key strategic areas within the country.

“However, we are unable to divulge any further information regarding the matter as we are still in the early stages of the bidding process. We will make an announcement once we have finalised the details,” he told reporters at the Rica Residence’s launching ceremony in Kuala Lumpur yesterday.

The group’s orderbook of RM600 million, comprising 70% construction and 30% property development, is expected to sustain it over the next two and a half years.

Apart from the potential construction wins this year, Fajarbaru is also expected to launch a high-rise residential development in Puchong, Selangor, by the first-half of 2018.

The upcoming launch with an estimated gross development value (GDV) of between RM500 million and RM600 million will consist of about 600 non-landed units.

Fajarbaru group chairman Datuk Low Keng Kok said the unveiling of the upcoming project may be earlier or slightly later than the targeted launching date, depending on the market sentiment.

Low said the company is constantly on the lookout for new land acquisitions when the opportunity presents itself.

“As a developer, we are always open to acquiring new landbanks in strategic locations in Malaysia if the price is reasonable. We are not limiting our range for potential acquisitions to the Klang Valley alone, as we are keeping a close eye within the Selangor region,” he added.

Currently, Fajarbaru’s total landbank stands at approximately 56.66ha located in Puchong, Melaka and Port Dickson.

Low said there would always be demand for housing and the property market is likely to see an upward trend with sentiments improving by next year.

“The market is facing an overbuilt situation at present and needs some time for the excess units to be taken up. Housing is a basic requirement regardless of the economic conditions and demand will continue to grow,” he said.

“Apart from first-time house buyers, including newlyweds, people are looking to upgrade and the demand is there,” he added.

Fajarbaru launched the Rica Residence in Sentul, Kuala Lumpur, yesterday which has a GDV of RM280 million and is slated for completion in the first-quarter of 2021.

The 473 units of serviced residences are selling at a starting price of RM600 per sq m with built-up areas ranging between 61.04 sq m and 115.11 sq m, comprising single studios to two-bedroom units, as well as dual-entry homes.

Kuan said Rica Residence saw a take-up rate of 70% during its private preview roadshows, attesting to home-owners’ confidence in the group’s property products.

“More property launches are on the cards and we look forward to bringing more innovative products that can further excite and delight our customers in the near future,” he added.

The launching ceremony was officiated by Federal Territories Minister Datuk Seri Utama Tengku Adnan Tengku Mansor.