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Friday, June 1, 2012

I-Bhd sees residential segment contributing 30% to revenue

I-t’s launched: I-Bhd executive chairman Tan Sri Lim Kim Hong (left), Housing and Local Government Minister Datuk Seri Chor Chee Heung and Eu (right) officiating at the ground breaking of i-Residence at i-City in Shah Alam yesterday.

SHAH ALAM: I-Bhd, the master developer of i-City, expects the residential segment of the information, communication and technology (ICT) based integrated township development to contribute 30% to its revenue.

“We are saying that the residential component is going to be about 30% of the whole of i-City. We hope that each segment will contribute fully to I-Bhd’s bottomline. In the long-term basis, we hope that they will contribute one-third each,” I-Bhd CEO Datuk Eu Hong Chew said.

He said the gross development value (GDV) of i-City’s first residential block amounts to RM225mil. This is 7.5% of i-City’s total GDV of RM3bil. i-Residence consists of a 33-storey condominium, which has 346 units in two tower blocks, and 20 units of low density exclusive duplex villas. Already 65% of the total units have been sold.

The size of the condominium units range from 715 sq ft to 1,357 sq ft while the 20 villas range from 2,400 sq ft to 3,700 sq ft.

i-City will have its own auxiliary force in accordance to the Housing and Local Government Ministry’s “Safe City” concept.

Piling works for i-Residence has started and construction is expected to be completed in 2½ years’ time.

Eu said: “We have 8 million sq ft of gross floor area set for residential. We will be launching 1 million sq ft a year. The first residential block in i-Residence is 500,000 sq ft.”

The remaining build-up space will be launched by year-end.

He expects the total development of i-City to be completed in 10 years.

“We are one of the very few high-rise developments in the Shah Alam area. The profile shown is that it suits young adults,” Eu said.

The universal theme of i-City is “Live, Work and Play”. i-Residence is part of i-City’s “Live” component, while the MSC Malaysia Cybercentre represents its “Work” component.

As part of the “Play” component, i-City launched the city of digital lights in December 2009 and subsequently introduced Snowalk and its theme park rides.

In a recent report, Kenanga Research said it expected i-City’s real GDV to be close to RM5bil assuming the average selling price hits a high of RM550 per sq ft.

Eu said: “We have zero gearing, so there are no loans on our side. In a down-cycle, we don’t lose anything. From a business perspective, even if we don’t sell anything, we will still have RM30mil to RM40mil recurring income, which is made up of rental income and leisure income.”

The entire development of i-City spans over 72 acres of freehold land. Only 15% has been developed. i-City will launch its water resort by year-end.

A direct flyover from the Federal Highway to i-City is currently under construction and will be completed in September.

The RM58mil flyover project was undertaken by the Menteri Besar Inc to ease traffic flow to and from the area.

By The Star

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