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Wednesday, October 28, 2009

KL Metro plans to launch projects worth RM300m

Boutique property developer Kuala Lumpur Metro Group will launch two resort developments and a housing project worth a combined RM300 million in Port Dickson, Bangi, and Penang, over the next eight months.

The low-profile group, which made a mark in property development when it launched its landmark project - the Legend International Water Homes in Port Dickson in 2003, is also planning to expand into China and Vietnam.

"We are looking at resort developments in China and Vietnam. We believe there is a market for resort-type products. We have identified the local partners, but plans are still preliminary," said KL Metro managing director Datuk Low Tak Fatt.

Locally, KL Metro will launch Phase 3 of the Legend Water Homes valued at RM45 million and 30 units of semi-detached houses in Bangi, worth RM25 million, by December.

By mid-2010, KL Metro will launch The Hibiscus in Penang, which features 460 units of five-star water homes at Teluk Kumbar.
The Penang development is worth some RM200 million and KL Metro is targeting buyers from Asia Pacific, Europe and the Middle East.

"Demand for water homes in Malaysia is greater than supply so we expect our projects to do very well," Low told a media briefing on the second phase of its Legend Water Homes in Kuala Lumpur yesterday.

Phase 2, which will open on November 1, offers 166 water homes, 44 garden chalets and 39 sky pool villas.

Priced from RM400,000 to RM700,000 each, some RM160 million or 99 per cent of the properties have been sold, Low said.

Majority of the buyers were from the Hong Kong, Singapore, Macau, the Middle East and some European countries, with an option to lease back at an 8 per cent gross rental income return a year.

Low said he expects 50 per cent occupancy in the first year, with average promotional room rates starting from RM550 per night to RM900.

He said KL Metro is aiming for occupancy to grow by 10 per cent per year via aggressive marketing.

"Despite the downturn of the economy and credit crunch worldwide, we still managed to complete Phase 2 three months ahead and sell all the units. We are proud of this development," Low said.

Phase 1, which has 329 units, was completed in 2006 and fully sold within two years.

The Balinese-themed resort took the "Best Architecture" and "Best Development" titles at the CNBC International Property Awards in London in 2007.

By Business Times (by Sharen Kaur)

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