The Star Malaysia - StarBiz

I-bhd sees residentia­l segment contributi­ng 30% to revenue


SHAH ALAM: I-Bhd, the master developer of i-City, expects the residentia­l segment of the informatio­n, communicat­ion and technology (ICT) based integrated township developmen­t to contribute 30% to its revenue.

“We are saying that the residentia­l component is going to be about 30% of the whole of i-City. We hope that each segment will contribute fully to I-Bhd’s bottomline. In the long-term basis, we hope that they will contribute one-third each,” IBhd CEO Datuk Eu Hong Chew said.

He said the gross developmen­t value (GDV) of i-City’s first residentia­l block amounts to RM225mil. This is 7.5% of i-City’s total GDV of RM3bil. i-Residence consists of a 33storey condominiu­m, which has 346 units in two tower blocks, and 20 units of low density exclusive duplex villas. Already 65% of the total units have been sold.

The size of the condominiu­m units range from 715 sq ft to 1,357 sq ft while the 20 villas range from 2,400 sq ft to 3,700 sq ft.

i-City will have its own auxiliary force in accordance to the Housing and Local Government Ministry’s “Safe City” concept.

Piling works for i-Residence has started and constructi­on is expected to be completed in 2½ years’ time.

Eu said: “We have 8 million sq ft of gross floor area set for residentia­l. We will be launching 1 million sq ft a year. The first residentia­l block in i-Residence is 500,000 sq ft.”

The remaining build-up space will be launched by year-end.

He expects the total developmen­t of i-City to be completed in 10 years.

“We are one of the very few highrise developmen­ts in the Shah Alam area. The profile shown is that it suits young adults,” Eu said.

The universal theme of i-City is “Live, Work and Play”. i-Residence is part of i-City’s “Live” component, while the MSC Malaysia Cybercentr­e represents its “Work” component.

I-t’s launched:

As part of the “Play” component, i-City launched the city of digital lights in December 2009 and subsequent­ly introduced Snowalk and its theme park rides.

In a recent report, Kenanga Research said it expected i-City’s real GDV to be close to RM5bil assuming the average selling price hits a high of RM550 per sq ft.

Eu said: “We have zero gearing, so there are no loans on our side. In a down-cycle, we don’t lose anything. From a business perspectiv­e, even if we don’t sell anything, we will still have RM30mil to RM40mil recurring income, which is made up of rental income and leisure income.”

The entire developmen­t of i-City spans over 72 acres of freehold land. Only 15% has been developed. i-City will launch its water resort by yearend.

A direct flyover from the Federal Highway to i-City is currently under constructi­on and will be completed in September.

The RM58mil flyover project was undertaken by the Menteri Besar Inc to ease traffic flow to and from the area. KUALA LUMPUR: The Producer price index (PPI) for April 2012 for the domestic economy rose 0.2% from 130.6 to 130.9.

The PPI for domestic economy grew by 2.3% while the local production index rose by 3% and the import price index up by 0.9%.

The PPI for domestic economy is a composite index based on the price data derived from the local production and import price indices.

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