KUALA LUMPUR: I-Bhd expects its maiden property project in Shah Alam, I-City Selangor, to contribute RM40mil in net profit in the next two financial years, according to director Johari Low Abdullah.

I-City is a 10-year development with a total gross development value (GDV) of RM1.5bil.

It is a joint venture between I-Bhd and Sumurwang Group, in which I-Bhd will assume the role of information communications technology and property developer for Sumurwang's 72-acre freehold site in Shah Alam.

Johari said the project would diversify the company’s earnings base and provide another income stream.

Johari Low Abdullah (inset) says I-City Selangor will diversify I-B hd’s earnings stream.

This will assure I-Bhd of continued profits in the future.

''We expect the first phase of the development to be released for sale by the end of March. This phase will feature 200 units of 22ft by 75ft shop-offices, with a total GDV of RM300mil,'' he said at a media briefing yesterday.

Johari said I-Bhd planned to release only 120 units, with a GDV of about RM200mil, for sale and rent out the rest.

''The company has yet to finalise the rental for the remaining 80 units,'' he added.

The first phase of the project comprises a pedestrian street mall, shopping centre and the innovation centre. It will showcase RM40mil integrated multimedia light and sound display.

I-Bhd achieved a net profit of RM6.8mil on the back of a 5.77% increase in turnover for the financial year ended Dec 31, 2005.

Source : The Star 01/03/2006