IOI Properties expects at least RM2.5bil revenue annually

by **Cals** Sat 15 Jun 2013, 14:49

Saturday June 15, 2013
IOI Properties expects at least RM2.5bil revenue annually
KUALA LUMPUR: [url=http://archives.thestar.com.my/search/?q=IOI Corp Bhd]IOI Corp Bhd[/url] group executive [url=http://archives.thestar.com.my/search/?q=Tan Sri Lee Shin Cheng]chairman Tan Sri Lee Shin Cheng[/url] expects [url=http://archives.thestar.com.my/search/?q=IOI Properties Bhd]IOI Properties Bhd[/url] to register a revenue of “not less” than RM2.5bil annually for the next three years.
[You must be registered and logged in to see this image.]Positive: Lee talking to reporters on the sidelines at Invest Malaysia
“IOI Properties has various projects in its line-up set to be launched in strategic locations such as Iskandar Malaysia, the Klang Valley, Singapore and Xiamen in China,” he told reporters on the sidelines of Invest Malaysia 2013 yesterday.
He added that the company was looking at about a 35% to 40% turnover contribution from its overseas property business.
“The Singapore property business is expected to contribute about 25% to IOI Properties’ revenue, while the business in China will contribute some 15%,” he said.
At the moment, IOI Properties has two projects in Xiamen – a residential and retail project, and a mixed-use commercial project. The residential and retail project was expected to start selling by next month, Lee added.
To recap, IOI Properties is set to demerge from parent IOI Corp and relist on the Main Market of Bursa Malaysia in the second-half of the year to become one of the biggest listed property companies in the country with total assets of RM15bil.
“Going forward, post-demerger, I think it is going to be very interesting to see IOI Properties alone being able to generate a very good revenue stream,” Lee said.
He said that the projects in Johor alone, including in Iskandar Malaysia, had so far generated a revenue of RM800mil.
Separately, Lee denied a previous report stating that the company was planning to buy privately-held [url=http://archives.thestar.com.my/search/?q=Achi Jaya Plantations Sdn Bhd]Achi Jaya Plantations Sdn Bhd[/url].
An earlier news report had said that IOI Corp was in talks to buy Achi Jaya Plantations’ 12,074ha oil palm plantation in Labis, Johor, for between RM800mil and RM900mil.