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Sunday, April 27, 2008

Tan & Tan plans RM500m condo sale

TAN & Tan Developments Bhd, the property arm of IGB Corp Bhd, is in talks for an en-bloc sale of its high-end condominium called 6 Stonor in Kuala Lumpur for RM500 million.

Tan & Tan's executive director Teh Boon Ghee said that discussions were ongoing to sell the 106 condominium units which will tentatively be launched next year.

"We are looking for en-bloc sales (for 6 Stonor) as there are many foreign investors interested in properties here today," Teh said.

The building will be on 0.58ha of freehold land and its development is currently under building plan.

In an interview with Business Times recently, Teh said that IGB's focus over the next few years will be the Klang Valley.

"Kuala Lumpur will remain the focal point of real estate development, where the rate of appreciation in capital value has been faster than most other second-tier cities in Malaysia," Teh said.

Tan & Tan, whose forte is in condominiums and gated housing, also plans to channel more resources into property development this year.

"For the past two to three years we have been concentrating on The Gardens project and lending our support to it, (so) other property development projects slowed down a little. Now that it has finished, we will furnish a larger percentage of our resources on property development," said IGB's executive director Tan Boon Lee.

"We hope to regain lost opportunity over the past year," Tan said.

IGB's revenue from property development fell 32 per cent to RM262 million in the year to December 31, 2007.

The decline was due to fewer launches as the group focused on completing The Gardens project in Mid Valley.

This year, it plans to launch properties with an estimated gross development value (GDV) of RM350 million and RM2.25 billion in 2009.

At the same time, it also has ongoing projects worth some RM700 million.

It has identified areas surrounding KLCC, Ampang Hilir, Wangsa Maju, Desa Pandan, Mid Valley and Sungai Buloh for projects given the infrastructure support there.

Projects planned for launch this year include 40 units of luxury condos in Ampang Hilir (GDV RM80 million), 218 units of serviced residences and 15 units of shop offices in Desa Pandan (GDV RM116 million), 66 units of Sierramas Hillside Villas (GDV92 million) and 17 units of villas in Sierramas Mews (GDV RM32 million).

Tan & Tan has some 81ha in the Klang Valley, of which 52.5ha is in Wangsa Maju. This project, with a GDV of RM1.2 billion, will be developed over seven years.

The group has over 500ha in Negri Sembilan, Pahang and in Pangkor.

By New Straits Times (by Vasantha Ganesan)

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