KUALA LUMPUR: Johor Land Bhd aims to venture into other more lucrative markets and higher-end products.

The last sizeable parcel of 1,474 acres near Johor Baru, which was purchased from its parent Johor Corp last December, will be Johor Land’s latest flagship development, Bandar Dato’ Onn.

The development will feature 17,800 residential and commercial units with a gross development value (GDV) of RM3.58bil. The project is expected to yield gross profits of RM920mil.

The highlight of Bandar Dato’ Onn is its precinct concept – each precinct is exclusive and has its own community centre. Emphasis is placed on green areas with linear and recreational parks throughout the township.

The first phase will be launched by next month and offer 652 two-storey terrace and semi-detached houses. There will also be 2,600 townhouses and apartments targeted at the younger market.

Shafiqui showing the plans for Bandar Dato' Onn.

Johor Land has engaged renowned landscape designer Made Wijaya to turn Bandar Dato’ Onn into a garden city.

According to managing director Shafiqul Hafiz, Bandar Dato' Onn when completed in 10 years would be the favourite residential and commercial address in Johor Baru. The township will be home to more than 80,000.

Shafiqul said Johor Land’s land bank of 3,116 acres would keep the group busy for the next 10 to 15 years. Located mostly in Pasir Gudang, Ulu Tiram, Senai, Tampoi and Johor Baru, the land has potential GDV of over RM7bil.

''Johor Land prides itself as one of the companies that have kept up a profitable financial record since being listed on the Bursa Malaysia main board in 1996. Now we are ready to move up the value chain and venture into other more lucrative markets,'' he said.

The company is open to opportunities in other states and possibly the region via strategic partnerships and alliances.

''We welcome new business opportunities to fully capitalise on our strength in property development to emerge as one of the country’s leading developers.

''There is much potential from our land parcels as they were acquired at competitive prices and located along the main growth corridors of Johor Baru,'' Shafiqul said.

Under the Ninth Malaysia Plan to develop an integrated growth corridor in south Johor, the area will be turned into a magnet for residential, educational and recreational facilities.

''With south Johor transformed into a mega-hub, we expect the property market to be further strengthened by the flow of investments from across the Causeway. We are confident the demand in residential, retail and leisure sectors will be able to sustain the growth and performance of the vibrant property market here,'' Shafiqul said.

In Pasir Gudang, Johor Land has built more than 12,000 residential and commercial units, mainly on behalf of Johor Corp.

Another ongoing development, Bandar Tiram in Ulu Tiram will consist of 12,300 houses, neighbourhood and town-centre shop units. The entire project has a total GDV of RM2.4bil and projected gross profit of RM700mil. It is scheduled for completion by 2020.

On the market outlook, Shafiqul said demand would be sustained by the attractive credit terms offered by banks, the growing number of the young working population, urban migration and growing affluence of the younger generation.

''The prevailing property oversupply was a result of mismatch of supply and demand due to the lack of research on what the market wants.

''Before we undertake a project, feasibility studies will be undertaken to identify buyers' preference and affordability. The fast take-up of our properties show that what we build are in sync with the buyers’ needs,'' Shafiqul said.

Source : The Star 2/2/2006