By HARIZAH KAMEL / Pic TMR
CHIN Hin Group Property Bhd is seeking to generate RM3.73 billion in gross development value (GDV) from its planned projects in the next two years.
The company in a statement yesterday said it is spending approximately RM268 million to acquire 81.9 acres (33.14ha) of land for the development of five different property projects situated in the Klang Valley.
The acquisition is in line with the group’s overall strategy to aggressively expand its property development segment.
Chin Hin ED Chiau Haw Choon (picture) said the group intends to expand the portfolio of developments to various growth corridors in the Klang Valley, such as Serendah, Bandar Kinrara, Bangsar South and Cyberjaya.
The types of developments being proposed are townships, serviced apartments, mixed-use developments and offices.
“With the increasing prospect of effective Covid-19 vaccination this year, there is optimism that the property market will see a turning point soon. On top of that, historic low-interest rates and various homeownership incentives will certainly bring some vibrancy to the market.
“As noted by Rahim & Co International Sdn Bhd in its Property Market Review 2020/2021, the industry will most likely gain momentum by 2022,” he said.
Chiau said this is a good time for developers to seize opportunities with the currently attractive land prices and expand landbank at strategic locations.
“This will ensure the group has a clear and sustainable growth plan ahead. We are targeting to launch these properties in one to two years’ time, in line with the expected recovery of property market,” he said.
Chin Hin announced its proposal to acquire an 11.53-acre land in Cyberjaya for RM50.22 million via a filing to Bursa Malaysia on Feb 8. The group said the move is part of its continuous efforts to replenish its landbank at better and accessible locations for potential development.
Barring any unforeseen circumstances, the acquisition is expected to be completed by the second quarter of 2021.
“Estimated to generate RM1.1 billion in GDV, Chin Hin has proposed to construct a mixed-development on this freehold land that is currently vacant.
“We chose this because of its strategic location in Cyberjaya which has seen significant development over the years driven by the investment and presence of global tech companies, prevalence of universities and other amenities, and well-planned infrastructure,” Chiau said.
He added that the proposed acquisition to build up the landbank and property development pipeline of Chin Hin is expected to contribute positively to the group in the next five years and improve its earnings visibility.
Chin Hin has two ongoing projects, namely Aera Residence and 8th & Stellar.
Aera Residence is a serviced apartment project in Petaling Jaya, with an estimated GDV of RM332 million, while 8th & Stellar is a two-tower mixed-use development comprising serviced apartments, duplex lofts, office space and shop lots on a 2.2-acre leasehold tract in Sri Petaling.
Its estimated GDV is RM470 million. The take-up rate for both projects currently stand at 98% and 69% respectively.