IOI Properties Rides Financial Strength

IOI Properties Bhd retains its position as a Top 10 developer in the country on the back of its strong financial position. Riding the housing market boom in the 1990s, the company grew to become one of the biggest and most profitable developers in Malaysia.

Although IOI Properties posted a lower 2QFY2008 group revenue of RM182.3 million compared to RM208.8 million in the preceding quarter due to uncertainties in the political situation and sharp rise in petrol prices, executive director Datuk David Tan is optimistic about the company's performance.

He says, "We have landbank in strategic locations and high-growth areas and we have the purchasers' confidence. As a township developer, IOI Properties provides a wide range of products that cater to changes in market sentiments." "Bandar Puchong Jaya used to be the backwaters, so we've come a long way.

Being recognised as one of the Top 10 developers every year (since The Edge Top Property Developers Awards was introduced in 2003) is wonderful, but we want to remain humble," says Tan, who played an instrumental role in designing the township.

So, what's ahead for IOI Properties?

The company is embarking on an ambitious project to develop the Puchong Financial Corporate Centre (PFCC) with office buildings being retained for leasing. "All banks, including foreign ones, have at least one branch in Puchong. Maybank has three branches while Public Bank has two. Banks are doing well due to the catchment of businesses here. So, developing a financial centre here is a natural move," explains Tan.

"Puchong has transformed from an industrial area to a location for major employers. However, it does not yet cater for the 'upper-middle' type of employers. We want to attract these types of employers as well as companies that want to move away from Petaling Jaya and Kuala Lumpur. "We are in the midst of negotiating with two major anchor tenants. PFCC will be the first green building block in Puchong," adds Tan. IOI Properties is also developing an office-cum-retail and entertainment hub called IOI Boulevard. According to Tan, 75% of the units have been sold. The company, however, has retained the two blocks facing the LDP Highway and the internal boulevard. "People will judge the image of the place by its frontage and so we want to control the tenant mix and manage it actively to ensure the place is vibrant. It's good for the buyers of other units in the long term," he says.

While developing parts of Puchong, IOI Properties is setting its sights on luxury developments elsewhere to add to its portfolio mix. In the pipeline is a high-end condominium along Jalan Ampang tentatively called Verandas. Also being planned are seafront luxury condominiums, Seascape and Pinnacle, in Sentosa Cove, Singapore. While pundits say prices have peaked at the time when IOI Properties entered into the agreement to acquire the 99-year leasehold land in Sentosa Island, Tan believes otherwise. He says the land is valuable because it is the last piece for sale at Sentosa Cove and furthermore, Singapore has many economic factors in its favour.

Source: The Egde Daily