Ideal announces RM600m mixed development in Balik Pulau

Ideal said the take-up rate of its properties has been encouraging due to good location and effective marketing strategies. — Picture by Sayuti Zainudin
Ideal said the take-up rate of its properties has been encouraging due to good location and effective marketing strategies. — Picture by Sayuti Zainudin

GEORGE TOWN, Aug 30 — Ideal United Bintang International Berhad is planning a mixed development project in Balik Pulau with an estimated gross development value of RM600 million.

In a press release issued today, the group revealed its recent acquisition of Ideal Greencity Sdn Bhd as its wholly-owned subsidiary for the purpose of venturing into development of the new project.

“Ideal Greencity Sdn Bhd has committed to a joint venture development with Koperasi Kampung Melayu Balik Pulau Berhad to develop a multi-phased integrated development in the serene district of Balik Pulau,” it said in the press release.

It said the 88-acre parcel of land will feature a proposed mixed development comprising two blocks of condominiums, two blocks of low-cost apartments, double-storey bungalows, double-storey semi-detached houses and double-storey terrace houses.

“Complementing this proposed development is a private hospital, retail shops as well as a bazaar which are included in the plans to enhance the overall value of this mixed development project,” it said.

The group believes that despite Balik Pulau being seen as a quieter area compared to the city centre on the island, the small township has experienced tremendous urbanisation in recent years, with new residential developments there.

“The Group is confident to receive positive response to this project and Ideal hopes to directly or indirectly strengthen the future growth and development of the Balik Pulau town,” it said.

It added that the additional land bank will undoubtedly contribute significantly to the group’s results in the near future.

The group today announced its highest net profit per quarter since listing for the second quarter of the financial year of 2019 by recording RM34.2 million net profit.

It said the profit recorded was 39 per cent higher than the RM24.6 million net profit achieved in the first quarter of this year.

Ideal achieved revenue amounting to RM146.9 million for the second quarter of 2019 while profit before tax was equivalent to RM47.14 million, an increase of 45.19 per cent from RM32.47 million recorded in the immediate preceding quarter.

“These increase were mainly contributed by the steady progress of construction works of I-Santorini and Forestville projects which has achieved 98 per cent and 84 per cent completion,” it said.

It said the Forestville project delivered a higher profit margin as compared to existing affordable housing developments, namely One Foresta and I-Santorini.

“This higher contribution has hence resulted in a significant increase of profit before tax as compared to the last quarter,” it said.

The increase also resulted in the profit attributable to the ultimate shareholders being recorded at RM18.4 million for the current quarter, a 52 per cent increase, as compared to RM12.2 million in the first quarter of 2019.

”Unbilled sales in the group stood at a total of RM406 million attributed from Forestville and One Foresta development projects,” it said.

In view of the encouraging results and the cumulative profit for Ideal, the board declared an interim dividend for the financial year of 2019 to its shareholders.

“A first interim single tier dividend of 1.0 sen per share, amounting to RM4,635,564.02 in respect of the financial year ending 31 December 2019, will be payable on 4 November 2019, to all shareholders whose names appear on the Record of Depositor on 18 October 2019,” it said.

The group also laid out its strategies, stating that the company is offering a wide selection of high-rise residences to different categories of buyers, this including affordable homes as well as condominiums with prices ranging from RM350,000 to RM700,000 per unit.

It said the group has also acquired lands in well sought after addresses within the Penang Island.

“Going forward, Ideal has sufficient land banks to carry out development projects for the next 10 years,” it said.

Despite the current sluggish market within the local property industry, the group finds that the take-up rate of its properties has been encouraging due to good location and effective marketing strategies.

“Coupled with Ideal’s established reputation, purchasers are confident that Ideal will be able to deliver their homes timely even during this slow down period,” it said.

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