By NST Business/Sharen Kaur - September 12, 2023
KUALA LUMPUR: IJM Land Bhd will broaden its product offering and build more mixed-use integrated complexes with commercial assets in key cities to expand its investment portfolio for recurring income.
The developer seeks to diversify its risk away from pure residential development projects for sale and into recurring income assets following two years of a home market downturn triggered by the Covid-19 outbreak.
IJM Land is seeking to build additional investment buildings like office towers, hotels, malls, and convention centres, as well as wellness and medical facilities with assisted living, which can produce more steady recurring revenue than selling residential units.
It also plans to build industrial parks as well as undertake transit-oriented developments (TOD) and autonomous rail transit-related (ART) projects.
"There is the ART with hydrogens in Sarawak. That is most likely one of the options we will consider. We are looking for potential TOD sites along the Mass Rapid Transit Line 3 (MRT3). I'm here to expedite development at IJM Land," its chief operating officer Datuk Tony Ling Thou Lung said.
"I studied the mandate I was given, which was to drive the company's strategic mission. We've been strategising what our short, medium and long-term goals should be. We are developing a variety of items that will hit the market during the next five years," Ling told the New Straits Times.
IJM Land has been concentrating on township developments like Rimbayu and Seremban 2, which are primarily residential-based. Both townships will take another 10 years to finish.
The company is also developing two large mixed-use integrated developments, The Light City in Penang and Pantai Sentral Park (PSP) in Kuala Lumpur, which will take 10–15 years to complete.
It is looking to expand into the commercial segment of the property market, not just for recurring income but also to increase the gross development value (GDV) of its projects.
"The property development market is now demonstrating resilience to market changes. Yes, some of the developers were affected by the pandemic, but they are all recovering. As far as IJM Land is concerned, all our launches are doing very well.
"The bread and butter for IJM Land previously was township developments, but now we are moving into integrated developments with serviced apartments and retail because of diverse demographic changes and rapid urbanisation where people are looking for well-designed and sustainable homes. I am very optimistic about the future," Ling said.
IJM Land achieved its highest local sales of RM2.7 billion in the financial year ended March 31, 2023 (FY2023), surpassing its previous record of RM2.5 billion in the year before that.
The company has set a sales target of RM2.1 billion for FY2024.
Although there is a lower sales target, IJM Land expects to perform better in FY2024, backed by RM3 billion in healthy unbilled sales as of March 31, 2023.
This year, the company plans to launch nine new residential projects totaling RM2.1 billion in gross development value.
Source: https://www.nst.com.my/business/2023/09/954144/ijm-seeks-recurring-income%C2%A0
No comments:
Post a Comment