KUALA LUMPUR: PROPERTY developer MB World Group Bhd (MBWG) is looking at potential joint venture projects in Sabah and Sarawak following successful launches at its Taman Sri Penawar township development in Johor.
Executive director Ng Liang Khiang said to be a thriving developer, the company had to venture to other parts of the country.
However, he said given that Sabah and Sarawak covered approximately 200,000 sq km and a relatively low population density about 31 per sq km, compared with 94 per sq km in Peninsular Malaysia, understanding the market trend and demand was vital.
Ng said the company had been receiving favourable response for its launches at Taman Sri Penawar.
“To date, all single-storey terraced houses under Phase 1 have been sold.
“Besides that, 60 per cent of single-storey terraced houses under Phase 2, 50 per cent of Harmonia (double-storey terraced houses) and 80 per cent of Desaru Avenue units (double-storey shop offices) have been sold as well.
“We acknowledge that the stringent lending requirements are an issue for buyers. However, we do not think this would affect our township development as we offer different types of developments at a reasonable price range, based on the buyers’ investment or living needs,” he told NST Business, here, recently.
Ng said MBWG did not have suitable residential products in Taman Sri Penawar for overseas buyers, in view of the ceiling price for foreign ownership.
The Taman Sri Penawar development is a project spanning 190.202ha with a total of 3,300 residential units and 380 commercial units.
The township is expected to be completed in seven years, and has an estimated gross development value (GDV) of RM1.9 billion. Ng said as MBWG’s market capitalisation stood at RM139 million, it might look at capital-raising exercises.
“We see raising capital fund as inevitable, but would not be limited to time, rights issue or new placements.
“It depends on opportunities and business development that are most workable to the company,” he said.
On revenue streams, Ng said in the next two to three years, MBWG would be focusing on the development of Taman Sri Penawar, especially Desaru Avenue and Harmonia, and Taman Sri Penawar’s Phase 1 and 2 of single-storey terraced houses with a combined estimated GDV of RM492 million.
“Besides that, we plan to launch medium low-cost shops, affordable single-storey terrace houses and double-storey terrace houses tentatively in the next two years.
“These future launches would make up RM500 million in GDV and are expected to continue contributing to the growth of the group,” he said.