KUCHING: Property developer Ibraco Bhd, which is currently undertaking a new major mixed development project – The NorthBank – here, is upbeat about its financial performance going forward.
Despite a generally soft property market, Ibraco has seen its group revenue soared to RM73.5 million in third quarter ended Sept 30, 2018 (3Q-2018) from RM28.2 million in 3Q-2017 or an increase of 161 percent. Group pre-tax profit rose to RM12.2 million from RM5 million or by 141 percent during the same period.
In the first nine months, group revenue climbed to RM155.3 million from RM69.6 million in the preceding year corresponding period while group pre-tax profit jumped to RM23.5 million from RM12.9 million.
“The group is confident that the financial results will upsurge in the coming quarters as the group has RM276.32 million unbilled sales and outstanding order book of RM230.61 million as of Sept 30, 2018,” Ibraco said when commenting on its prospects when releasing its latest quarterly results recently.
‘ The group is confident that the financial results will upsurge in the coming quarters as the group has RM276.32 million unbilled sales and outstanding order book of RM230.61 million as of Sept 30,
2018.’
Besides property development, Ibraco’s construction arm is undertaking the RM302.6 million new Mukah Airport project, which is expected to be completed in August 2020.
The NorthBank project, which is opposite Ibraco’s nearly completed flagship development – Tabuan Tranquility – got off to a roaring start when its first project “Nova 72” was launched in March, this year.
Nova 72 consists of 50 units of double-storey terraced houses and 14 units of double-storey semi-detached houses, which were sold out on the launching date.
Ibraco said the strong demand for these new houses provided a positive indicator for the company to launch subsequent developments. In June, it offered for sale eight units of three-storey semi-detached houses.
According to Ibraco managing director Datuk Chew Chiaw Han, The NorthBank project on 123 acres, offers purchasers with choices of various types of residences built with a walking distance to commercial and office units as well as a social clubhouse.
It is here where the proposed Tunku Putra-HELP International School is now under construction. The school project is a joint venture among Ibraco, HELP Education Services Sdn Bhd and CMS Education Sdn Bhd. The new school is expected to commence operation by January-2020.
Ibraco’s new corporate office will also be sited in The NorthBank, with the project’s construction work started last year.
“Tabuan Tranquility is currently in the final phase of development, with 167 units of small office home office (SOHO) and 84 units of shop offices which both have been launched during the last quarter of 2016.
“The SOHO and shop offices development are estimated to generate a gross development value (GDV) of RM64 million and RM138 million respectively.
“The group has also launched the lock-up retail outlets within the SOHO development in May 2017, and expected to launch the education block in 2018,” Chew said in the company’s 2017 annual
report.
Tabuan Tranquility, which spans over 173 acres, comprise more than 1,000 units of medium to high-end residential properties, a commercial hub with banks, eateries, fashion and lifestyle retail outlets and a hypermarket. The project commenced about eight
years ago.
Ibraco spread its wing to Peninsular Malaysia where it launched its first mixed development project called “ContiNew” in Kuala Lumpur city centre last year.
ContiNew consists of two residential towers, with 510 units of service apartments, four units of three-storey commercial/retail shops and 30 units of retail/office spaces. The on-going project has a GDV of more than RM400 million.
Riding on the success of ContiNew, Ibraco has entered into a separate sale and purchase
agreement with Milan Sanctuary Sdn Bhd and Jurapat Sdn Bhd to acquire a leasehold land in Bandar Petaling Jaya Selatan for RM37.44 million.
“The land is approved for mixed commercial development and the group has identified the land as an appropriate and strategic development which will enhance the future earning potential of the group and its presence in west Malaysia,” said Ibraco.
Another major Ibraco development is Town Square Bintulu project which the company is undertaking with its joint venture partner, Bintulu Development Authority (BDA).
The project’s first phase development, which was completed in 2016, comprises of 75 units of three-storey shop offices and an eight-storey office block with an estimated GDV of RM136 million. The lock-up retail plaza, which is a component of the first phase development, was completed early last year.
Town Square Bintulu is now into its phase two development which comprises a 13-storey block with lock-up retail outlet and 158 SOHO units with an estimated GDV of RM69 million.
With a current land bank of some 632 acres, the Ibraco group, according to Chew, is actively seeking land around major towns in Sarawak and in Peninsular Malaysia to increase its land bank for future development.
