Thursday, July 12, 2012

China company wins RM230m deal


By Sharen Kaur
sharen@nstp.com.my
Published in NST on July 7, 2012

KUALA LUMPUR: OSK Property Holdings Bhd has awarded a RM230 million contract to Beijing Urban Construction Group (BUCG) to redevelop The Atria, which is worth RM1 billion.

The developer is reconstructing The Atria in Damansara Jaya, Selangor, building two 16-level SOFO (Small Office Flexible Office) suites and a four-storey retail podium.

OSK Property bought The Atria, a popular neighbourhood shopping centre, in 2007 for RM75 million. The building was established in the 1980s.

Executive director Tan Sri Ong Leong Huat said the total cost to reconstruct The Atria would be RM280 million and it includes RM50 million to demolish the building, for earthworks and to lay the foundation.

At the signing of an agreement between OSK Property and Beijing Urban Construction Group yesterday, Ong said reconstruction of The Atria had commenced, and works are expected to be completed by end-2013.

"By early 2014, the mall and SOFO will be ready for occupation. We are confident the mall will do well as it is located in the heart of Petaling Jaya. So there is big catchment," said Ong.

Ong is bullish on the outlook of the property market, saying that Malaysian properties are stable, helped by increasing demand for new housing.

He said OSK Property, which has 708ha of undeveloped land currently, will continue to launch new projects, albeit cautiously.

The company, which is majority controlled by the Ong family, has eight on-going projects currently, worth a combined RM5 billion.

Ong said after the spinoff of OSK Property from OSK Holdings Bhd, the company has become even more dynamic.

The company expects significant net profit growth between this year and 2014, thanks to its current unbilled sales of over RM800 million, Ong said.

Last year, its net profit increased by over 100 per cent to around RM26 million, and in 2010, it grew by 120 per cent to some RM12 million.

"We are more focused now in our property development, property management and investment activities," Ong said.







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