PJD banks on Aussie project to lift earnings

By Sharen Kaur
Published in NST on Decembr 24, 2014

KUALA LUMPUR: PJ Development Bhd (PJD), which is being acquired by veteran stockbroker Tan Sri Ong Leong Huat’s OSK Holdings Bhd, is banking on its A$1 billion (RM2.84 billion) property project in Australia to boost earnings from 2016.

The property company is targeting a mixed development in Melbourne’s Southbank on a carpark site.

It acquired the 2ha site for RM439.3 million in an off-market deal in April this year.

Australian developer Banco Group offloaded the 2ha Southbank site occupying the block bound by Kavanagh, Power and Balston streets, the West Gate Freeway and the Citylink Operations Maintenance building.

The site is capable of accommodating six or more skyscrapers.

According to PJD general manager of sales and marketing Nicole Lee Chee Yiing, the company aims to build serviced residences, apartments, offices, a hotel and retail.

The project, which could potentially house more than 3,000 units, is in the planning stage.

Lee said, given the project’s sizeable scale, it expects that the development will take nine to 10 years to complete with construction works commencing in early 2016.

“We envision a city within a city concept for our Southbank project with various components coming together to further enrich the lively community that is already in the area,” Lee told Business Times.

At home, PJD is working on seven projects comprising hotels and residences, with gross development value (GDV) of more than RM1.2 billion.

PJD is building Swiss-Garden Residences Sungai Karang and Damai Laut Sea Villa, both in Kuantan, Pahang; D’Majestic serviced apartments in Kuala Lumpur; Swiss-Inn Johor Baru; and Swiss-Garden Hotel & Residences Cameron Highlands, which it will wholly own.

This is on top of operating Swiss-Garden Hotel & Residences Malacca and Pavilion-Garden Suites in Kota Baru, Kelantan, under a management contract for third parties.

Lee said the approval process for new projects in Malaysia is getting more challenging due to the higher requirements and standards set by both authorities and purchasers.

Despite the added challenges, PJD views this as a healthy process that will help nurture the property industry towards a stronger and healthier model that all stakeholders within the value chain will benefit from, Lee said.