Bolton Bhd plans to launch RM3 billion worth of projects over the next two years, with most of the new properties – mostly high-end residential units - located in the Klang Valley.
With the rise of construction costs, a lot of property developers, especially those with middle- and lower-income target markets, have had to review sale prices and delay launches but chairman Datuk Azman Yahya believes that demand for higher-end properties remain strong.
The launches include the Mayang Development, with an estimated gross development value (GDV) of RM2.5 billion, The Piazza at Puchong with a GDV of RM105 million, as well as Tijani 3 and Bolton Court both with a GDV of RM100 million each.
On top of that, the developer is also looking to acquire smaller property developers in the Klang Valley and is already in negotiations with several parties, said Azman. He added that the company hopes to clinch some of the deals over the next 12 months.
Apart from that, Bolton is also seeking to dispose its non-core assets such as the Campbell Complex and Langkawi Fair by the end of March 2009, in order to focus on property development. According to Azman, Campbell Complex is worth some RM55 million and Langkawi Fair is worth between RM45 million and RM50 million.
Despite the slowdown in the property market, Bolton expects higher sales and earnings for the financial year ending March 31, 2009. For the financial year ended March 31, 2008 the company recorded a net profit of RM46.7 million on revenue of RM299.3 million.
