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Monday, January 14, 2008

Tan & Tan expanding niche development

It will launch projects in the Klang Valley with GDV of RM2.5bil

TAN & Tan Developments Bhd, a wholly owned unit of IGB Corp Bhd, is expanding in the niche residential property market with the launch of new lifestyle products in the Kuala Lumpur city centre and the suburbs in the Klang Valley.

Over the next two years, the company will launch 11 upmarket projects in the Klang Valley worth a total gross development value (GDV) of RM2.5bil. These projects will keep the company busy for the next five to six years.

“Our focus will be on key and new growth areas such as the Kuala Lumpur City Centre (KLCC) vicinity, Ampang Hilir, Wangsa Maju, Desa Pandan, Mid Valley City and Sungai Buloh, where there is a lot of infrastructure development,” Tan & Tan executive director Teh Boon Ghee told StarBiz.

Teh Boon Ghee (left) and Tan & Tan Developments Bhd group marketing general manager Kevin Kuok with a model of the Hampshire Place project.

He said the robust residential property market, especially for high-end residences in the Klang Valley, offered developers with good track records in niche housing projects immense opportunities to further add value to the residential landscape.

Malaysia has emerged as a competitive real estate destination, and there is growing foreign interest in our real estate. The onus is on developers to come out with more well designed and quality products that offer high investment values,” he added.

Teh said the Malaysia My Second Home (MM2H) programme had been effective in attracting foreigners to the country.

Last year, 8,000 foreigners participated in the programme, with over 1,700 people making Malaysia their second home.

“With the Government continuing to ease restrictions on foreign ownership of local residential properties, there will be more participation in the MM2H programme.

“The increasing number of foreigners making Malaysia their home will boost demand for high-end and niche developments. Going forward, the market will be seeing more new luxury properties coming on-stream to attract the well-heeled and high net worth investors, both local and abroad,” Teh noted.

He said Tan & Tan would launch more innovative lifestyle products to take advantage of the strong interest for residential properties in robust locations and new growth areas.

The company is also taking steps to strengthen its premium branding through positive customer experience and provide value and security for all its projects in the mid to high-end segments.

Tan & Tan general manager of group marketing Kevin Kuok said one of the more attractive projects, to be launched in March, would be Hampshire Place, comprising service residences and corporate offices-cum-retail space.

The 30-storey block of 186 service residences will feature residences with built-up from 764 to 3,257 sq ft and priced from RM674,000 to RM1.3mil.

Another 30-storey block will accommodate 219,222 sq ft of corporate offices and retail space, worth a GDV of RM188mil.

Besides being one of the leading players in the luxury condominium market, Tan & Tan is also building up its presence in the mid to high-end landed residential sector in good locations in the Klang Valley.

Its portfolio of ongoing projects includes five luxury condominium developments and service residences and a gated community project.

Projects planned for launch in the next two years include three landed villa projects in Sierramas West and Wangsa Maju and two service residences with shop offices.

With the line-up of the upmarket residential projects, Tan & Tan's contribution to IGB group earnings is expected to increase from 30% now.

The company is also making efforts to expand its land bankthrough more joint ventures and new land acquisitions.

Teh said that since the amendment of the Strata Titles Act last year that allowed landed strata title developments, Tan & Tan was looking at building more such projects.

“Landed strata title residences are still a relatively untapped market, and the company has lined up a number of such projects for launch in the next two years.”

He said such developments provided scope for uniformity of the project design for the common interest of the buyers and would ensure greater flexibility in the project planning.

Among the company's upcoming landed strata title projects is Sierramas Mews that will comprise 17 landed villas with a GDV of RM32mil. Other projects will be on 25 acres in Ulu Klang/Dataran Ukay and 37 acres in Melawati.

Teh said the much-awaited plans by the Kuala Lumpur City Hall (DBKL) to further spruce up the city through infrastructure development would raise the value of developments in the Ampang and Jelatek areas.

“The ongoing infrastructure developments by DBKL, including road projects in Wangsa Maju and improvements in highway connectivity with the Duta-Ulu Klang Expressway (Duke) and the Putrajaya-Kuala Lumpur highways, will offer strategic access points to the company's landbank,” he said.

By The Star (by Angie Ng)

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