Business

Tuesday August 21, 2012

KSL allocates RM200mil to increase Klang Valley landbank

By NG BEI SHAN
beishan@thestar.com.my


KLANG: Johor-based developer KSL Holdings Bhd is in the process of increasing its current 500-acre landbank in the Klang Valley.

Khoo Soon Lee Realty Sdn Bhd, a unit of KSL, to embark on its maiden Klang Valley project, Canary Garden, at Bandar Bestari, Klang.

Project director Patrick Khoo Keng Ghiap, who oversees the project, told StarBiz the company had allocated RM100mil to RM200mil to increase its landbank in the Klang Valley in one year.

Khoo is the son of KSL managing director Michael Khoo.

<B>New project:</B> Khoo Soon Lee Realty sales and marketing head Chris Fong showing a model of the Canary Garden project in Klang. New project: Khoo Soon Lee Realty sales and marketing head Chris Fong showing a model of the Canary Garden project in Klang.

“Our gearing of 0.3 is relatively low compared to the other players.

“We definitely have to buy new land because that is how we generate income,” he said.

Quality land in the Klang Valley is getting scarce, Khoo said. “You'll just have to wait for the right opportunities.”

Some of the factors to consider when acquiring land are the plot ratio and location.

He said the company would like to focus on the Klang Valley and did not have plans to expand to other states like Penang or Malacca at the moment.

“We want to do it one step at a time and would like to build our name as a main developer in Klang,” he explained.

The developer moved from its base to the Klang Valley due to better margins, Khoo said.

KSL is not the only developer that has ventured into the Klang Valley from Johor. Another Johor property player, BCB Bhd, has also developed projects in the Klang Valley like Concerto Kiara @ Mont Kiara and a bungalow project in Taman Yarl.

KSL's Canary Garden project sits on 446 acres which were acquired by the company in 2010.

“Our competitive edge will be our design and landscaping.”

“Out of the 446 acres, 52 acres is considered big for landscaping,” he said, adding that not all developers would allocate much land for landscaping.

“Other factors will be security and amenities. We have proposed several schools on the 446 acres, pending approval of our master plan,” he added.

“We target to complete this project in five to ten years,” he said.

Since the launch of the first phase of Canary Garden four months ago, the company has generated about RM100mil in sales. About 90% of the houses launched have been sold.

KSL is also working on the next project a 50-unit condominium development in Ampang Hilir, Kuala Lumpur. It will sit on a 0.8 acre and is expected be completed in 2015.

The condominium, starting from 2,000 sq ft, works out to RM2.6mil or more per unit.

“It costs RM1,300 per sq ft which is still cheaper than that of our competitors,” he said.

Back in Johor, KSL has three developments near completion, namely Taman Nusa Bestari along Jalan Sungai Danga, Taman Bestari Indah in Ulu Tiram and Taman Kempas Indah in Kempas.

It also has recurring income from two hypermarkets and a mall in Johor Baru.

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