IJM Land Bhd has been in discussions with various parties for mixed property developments in China’s second-tier cities. These projects are likely to be commercial and residential developments, which could be carried out via joint ventures with local partners in China.
Managing director Datuk Soam Heng Choon said IJM Land is always in talks with parties either locally or abroad for joint property projects. He added the company has not set any time frame for the new China ventures but said that it will continue to look for new business in China and replicate its local projects such as niche and township developments.
The company expects its China ventures to contribute to profits in the next three to four years. It is currently developing a RM500 million mixed property development in Changchun, which it expects to launch next year. Soam said China represents its second overseas venture after Singapore, and it is also interested in other emerging markets such as Vietnam.
According to Soam, the company is also seeking en bloc sales for its upcoming commercial projects in the Klang Valley and elsewhere. He added the company is in talks with fund managers operating out of Hong Kong and Singapore and that these could be European or American funds.
On its 28 projects to be launched in the financial year ended March 31, 2009, Soam said it was reviewing some projects with the possibility of putting a few on hold. He said upcoming projects may have higher selling prices, which have been adjusted according to construction costs. He also revealed that margins were squeezed for lower-end products but demand remains for the medium to medium-high markets.
IJM Land recently unveiled its new corporate identity and logo, signaling the completion of the rationalisation exercise involving RB Land Bhd and IJM Properties Sdn Bhd. The new entity makes the company a major player in the Malaysian property scene, merging RB Land’s expertise in township development with IJM’s expertise in high-rise condominiums, niche developments and commercial buildings.
