Gamuda expands its international market with new projects in London, Melbourne

The group will add an average of 5 projects a year from FY23 and beyond in 5 years, says CEO

by AUFA MARDHIAH / pic AUFA MARDHIAH

GAMUDA Bhd’s property division, Gamuda Land is expanding its international market with two new overseas projects, namely West Hampstead Central in London (first UK property) and The Canopy on Normanby in Melbourne (second Australian property).

Gamuda Land CEO Ngan Chee Meng said the group will add an average of five projects a year from the financial year 2023 (FY23) and beyond in five years, focusing on Malaysia, Singapore, Vietnam, Australia and the UK.

“Expanding internationally is consistent with Gamuda Land’s five-year business plan. It is part of our strategy to achieve RM8 billion in annual sales in the next five years. 

“Our expansion to overseas markets is due to the growing population and prospects there. There are many property players in Malaysia, so we will be diversifying our markets where we have already established a strong presence,” he said during the media preview of Gamuda Land International Collection Launch (Australia and UK) today.

The ceremony was also attended by Gamuda Land Australia GM Jarrod Tai and Astir Living Ltd co-founder Travis Crawford.

Both the UK and Australia projects estimate 65 million pounds (RM336 million) and A$180 million (RM541.87 million) of the GDV respectively.

West Hampstead Central started construction in October 2021 and is estimated to complete in 3Q23. 

It features 101 units of one- and two-bedroom apartments, located in a prime location within London with many of the capital’s top attractions and neighbourhoods.

Meanwhile, The Canopy on Normanby is estimated to commence in mid-June 2023 and completion in March 2025. 

It features 213 units of one, two or three-bedroom apartments planned over 20 levels.

Located approximately 1.2km from the Melbourne Central Business District, it is situated within an emerging neighbourhood within Fishermans Bend, Australia’s largest urban renewal project comprising over 480ha in the heart of Melbourne.

Furthermore, Gamuda Land will also deliver a new 3,000 sq m public park in collaboration with the City of Port Phillip, the Department of Environment, Land, Water and Planning, and the Fishermans Bend Taskforce, which will see a section of neighbouring Johnson Street permanently closed and transformed into an open green space for the community.

On the market response for the two new projects, Ngan said they have received good responses from local and overseas buyers. 

Additionally, the two projects will be officially announced in Singapore and Vietnam this week due to the interest from both countries for the projects.

Gamuda Land’s international expansion will be based on three strategic thrusts, including achieving a 50:50 split between domestic and overseas initiatives and launching new bite-sized projects. 

Unlike township developments, which need a large upfront capital commitment and a longer turnaround time, profits on these bite-sized initiatives may be projected within the first five years and earnings can be recycled into other new projects.

Moreover, the group is also considering expanding its company portfolio in commercial and industrial projects, owing to the anticipated demand for sustainable office buildings in the UK market.

The same is being considered in Vietnam, owing to the country’s foreign direct investment inflows and positive economic prospects.

For FY23 prospects, the group has several projects overseas including in Vietnam (Celadon City in Ho Chi Minh City and Gamuda City in Hanoi, Artisan Park in Binh Duong New City); Singapore (OLA Residences); as well as eight ongoing domestic projects in Klang Valley, Johor and Sabah.

On the group’s wishlist for budget 2023, Ngan hoped that the government would provide grants for first-time home buyers.

“To aid home ownership, especially for first-time homebuyers, we hope the government will implement initiatives that will stimulate the job market. 

“Initiatives such as large-scale infrastructure works will create job opportunities for many that will enable people to afford a roof over their heads,” he said.

He also said in addition to the successful Home Ownership Campaign, the government can consider mortgage interest tax relief for low-income people who qualify for it based on a preset qualification criterion set by the government.

“We also hope to see holistic strategies that would bring about positive long-term changes that would encourage the sector to adopt sustainable development practices. 

“This would encourage us as a nation in attaining our net zero goal by 2050 — as construction and real estate in Malaysia accounts for 40% of carbon emissions.

“We also call on the government to incentivise businesses to spur the adoption and implementation of smart city infrastructure in Malaysia,” he added.