SHAH ALAM: In a move to weather through the cyclical nature of the property development industry, I-Berhad is building up its property investment and leisure segments, which can generate recurring income for the group.
I-Bhd, the master developer of i-City Ultrapolis, targets its property investment and leisure segments to contribute half of total group revenue in five years.
For the financial year ended Dec 31, 2018 (FY18), the property development segment contributed about 90% of total group revenue.
After the group’s AGM yesterday, I-Bhd deputy chairman Datuk Eu Hong Chew said that as at end FY18, pre-tax profit for the property development segment was RM74mil, while the leisure segment contributed RM10.3mil.
“The target over the next five years is to grow the leisure segment’s net assets from the current RM112mil to RM300mil and the property investment segment to generate a return on net assets of 5%.
“Following which, I-Bhd shall see a total pre-tax profit of RM150mil,” he said.
The investment property portfolio shall comprise car park bays, data centre, Best Western i-City hotel, Doubletree by Hilton hotel, Central i-City shopping mall and two convention centres.
I-Bhd owns 40% equity in Central i-City, with the remaining 60% held by Thailand’s largest listed property developer Central Pattana Plc Group.
Central i-City, which has a net lettable area of 940,000 sq ft, is the first mall investment outside of Thailand for Central Pattana.
Currently, the second convention centre and DoubleTree by Hilton hotel are under construction, with targeted completion by 2021.
In terms of property development launches, I-Bhd plans to launch one smart residence tower and one smart office tower in the next six months, which will have a total gross development value (GDV) of RM790mil.
During the AGM, I-Bhd chairman Tan Sri Lim Kim Hong said the recent statement by Selangor Mentri Besar Amirudin Shari of i-City being the heart of Selangor’s Golden Triangle is a positive for the group.