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Wednesday, April 18, 2012

I-Berhad targets up to RM500m revenue from i-City by 2014

I-BERHAD aims to launch RM450 million worth of properties a year at i-City in Shah Alam, Selangor, giving it a steady revenue of RM400 million to RM500 million by 2014.

Founder and chairman Tan Sri Datuk Lim Kim Hong said this will represent a significant leap for I-Berhad whose revenue from development properties had been averaging at about RM15 million a year for the past two years.

Lim said the basis for the jump in revenue is because the company will develop more residential components than just building commercial properties.

Last July, I-Berhad signed a management and development agreement (MDA) with the Selangor state government and the Shah Alam Municipal Council to document the various benefits and support provided to i-City since it started in 2006.

From the property development perspective, the MDA enabled i-City to increase the plot ratio from 1:3 to 1:5, raising the project’s value from RM2 billion to RM3 billion.

It had also increased i-City’s gross floor area (GFA) for residential, SOHO (small office/home office) and SOVO (small office/versatile office) developments from 500,000 sq ft to 8 million sq ft.

So far, I-Berhad has launched i-Residence with GFA of about 540,000 sq ft. In the second half of 2012, it will launch SOHO and SOVO developments to achieve its one million sq ft GFA target for the year.

Apart from property development, I-Berhad is building its investment portfolio and leisure business.

Based on the December 2011 quarterly announcement, the revenue from the leisure business jumped sixfold to RM17 million and the company aims to double that in the current year.

I-Berhad has been investing about RM10 million a year in leisure attractions since the opening of its City of Digital Lights in December 2009.

“The venture into the leisure business has proven to be very profitable for I-Berhad,” Lim said.

He said the challenge going forward for I-Berhad is not about launching new products but how to further enhance the development value.

By Business Times

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