Petaling Jaya: Johor-based Crescendo Corp Bhd expects its industrial property development to be the main contributor to its turnover for its 2008 financial year.
Its managing director Gooi Seong Lim said it expects the sector's revenue contributed about 16%, or RM12 million, to its revenue of RM75.3 million.
"As the margin for industrial properties is better, it would provide more significance to the bottom line," he told reporters after its annual general meeting yesterday.
He also said that the 500-acres Nusa Cemerlang Industrial Park, with a gross development value of RM1 billion, would be the main focus for the company. It will be developed in eight to 10 years over three phases.
"Our new industrial project [Nusa Cemerlang] is located in Nusajaya - a key development area within the IDR [Iskandar Development Region]. We have completed the main infrastructure and now building phase 1A that was launched in the last quarter," he said.
It launched 46 units of medium-cost factories with built-ups ranging from 6,000 to 50,000 sq. ft. It is priced at an average of RM150 psf. Some 25% of the units have been sold and completion is expected by the first quarter of next year.
Meanwhile, the development of its 600-acre Taman Perindustrian Cemerlang along the Tebrau Corridor is near completion. Some 85% of the project has been developed and houses some 800 factories which have all been sold. Launched in 1991, the developer priced it at an average of RM100 psf. The developer said secondary values today are at around RM150 psf.
The developer is also expected to be one of the main beneficiaries of the IDR as more than half of its landbank is located there. Currently, its landbank totals 3,300 acres of which 1,975 acres are located within IDR. This will keep them busy for 20 to 30 years. The remaining landbank is in the Kota Tinggi region.
There are plans to build a resort development in the next 10 years. On its residential offerings, Gooi said it would launch its RM400 million mixed waterfront development located within the IDR in the next two to three years. It expects the Johor housing market to pick up.
"The overhang situation in Johor is expected to ease by then following government policy changes to attract foreign direct investment. We are now doing the earthworks and main infrastructure for the 222-acre project," he said.It also plans to launch the 1,390-acre Bandar Cemerlang mixed developement, which is alsowithin IDR, in the next two to three years. Over the next two years, the developer would be investing RM15 million on access and infrastructure works for its projects within IDR.
Crescendo Corp's other projects include the Desa Cemerlang mixed developement and Taman Dato' Chellam.
For its financial yearended JAn 31, 2007. It recorded a profit before tax of RM25.2 millon.
The Sun, 31 July 2007