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Thursday, August 7, 2008

Mutiara Goodyear has undeveloped land worth RM4b

PROPERTY developer Mutiara Goodyear Development Bhd said it has 360.5ha of undeveloped land in hand with a gross development value (GDV) of RM4.1 billion, that will keep it busy for the next five years.

The plots of land are located in Penang and the Klang Valley, said its chief executive officer Kee Cheng Teik.

KEE: The demand (for property) is quite real. We do not see much bubble in the industry

Despite rising building material costs, the company is going ahead with the launch of two major projects in the Klang Valley this year.

It will launch a 1.38ha commercial development called Prima Avenue in the next two weeks, followed by Melawati development, which features luxury residential properties on 32.4ha, by the end of this year or early next year.

The projects have a combined GDV of RM920 million.

Kee is optimistic that the two projects will be well received for their strategic location and product mix.

He added that although uncertainties in the market may hold up decisions on property buying, it is only for the short term.

"We notice that the demand (for property) is quite real. Honestly, we do not see much bubble in the industry," he told reporters after the company's extraordinary general meeting in Kuala Lumpur yesterday.

"Where there is real demand, we see holding power. People buy for the value of the project. Hence, we are holding a longer term view on all the projects that we develop," Kee added.

Kee said Mutiara Goodyear has made provisions to purchase raw materials such as steel bars and cement directly from suppliers for its new projects.

Amid the present challenging scenario, he said, the company is managing its margins well.

Meanwhile, Mutiara Goodyear is exploring opportunities to develop properties overseas such as in Vietnam and China.

Kee said it is in talks with "some parties but no time frame has been set".

By New Straits Times (by Rupinder Singh)

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