Commercial & Industrial Property News Update

Malaysia - Development Of I-City To Speed Up


August 15, 2012

I-Berhad is speeding up the development of its RM 5 billion i-City project in Shah Alam, Selangor, which is currently 20% completed.

I-Berhad has said that it would speed up developments at its next-gen i-City project in Shah Alam, a massive commercial project estimated to be worth RM 5 billion.

The company has also been approached by several parties to replicate i-City in other cities around the world, said executive chairman Tan Sri Lim Kim Hong.

"We will consider replicating i-City when the project is about 50% completed. We expect to reach that in three to four years," said Lim.

Spanning 42 ha in total, i-City is a knowledge and tourism project featuring a mix of office, retail, hospitality and residential units. It will offer 18 office towers and residences, three hotels, a one-million-sq-ft mall, a cybercentre, shop offices and retail units.

As an integrated development, i-City will also cater to the needs of residents with several leisure components including a snow walk, a theme park and a waterpark.

The project is currently 20% completed.

With a 65% stake in I-Berhad, Lim has invested RM 1 billion in the project over the last five years. He said that in the next six months, the company will begin construction for various Soho (small-office, home-office) and Sovo (small-office, versatile-office) units. It will also commence building the one-million-sq-ft shopping mall as well as a three-star hotel.

In total, I-Berhad will complete 950 Soho and 220 Sovo units, with combined gross development value (GDV) of almost RM 600 million.

Lim said that international partners will be sought to jointly build and manage the mall and hotel properties, with deals expected to be inked within the next three months.

The property development division would be I-Berhad's largest revenue generator in the next three years, noted Lim.

He added that the company aims to launch RM 500 million worth of properties a year at i-City, giving it a steady revenue of about RM 500 million per annum from 2014 onwards.

The leisure division is also expected to perform well, with RM 50 million in revenue projected in 2013 at a high profit margin of 40%.

Pre-tax profit for financial year ended 31 December 2011 was reported at RM 1.84 million on revenue of RM 27.3 million.

Tags: Commercial real estate, Business space, Shop for rent

 

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