SPK Homes eyes Abu Dhabi entry

An artist's impression of the superlink homes in Cahaya SPK

KUALA LUMPUR: SPK Homes, the property arm of Sharikat Permodalan Kebangsaan Bhd (SPK), may be venturing into Abu Dhabi in the United Arab Emirates by the end of next year, said its property division head Steven Lim.

The group’s construction arm SPKSentosa Corp Bhd, through a joint venture with Bina Puri Holdings Bhd, had earlier in May, secured a RM444 million contract from Al Tamouth Investments LLC for the execution and implementation of the Phase 1, Plot 1 Zone B residential, commercial and recreational development of Al Reem Island in Abu Dhabi.

“It is normal for a company’s construction arm to first venture overseas, followed by the property arm. However, we are in no hurry as we first need to study the market before actually going there,” said Lim.

Lim added that locally, SPK is continuously looking for joint ventures (JV) with potential landowners in the Klang Valley and Penang.

“As some of the landowners might be inexperienced in property development, a JV with them would be one of the options to bring up the value of the land,” he said. SPK Homes is currently in a 50:50 JV with Sunway City Bhd on the Sunway-SPK Damansara project and would be involved in another JV by the end of next year to develop high-end homes on a 17-acre
tract in Gelugor, Penang.

Lim was speaking to theSun on the sidelines of the launch of The Benevolent Hearts Trust 2008
Calendar recently. SPK Homes helped develop the charity calendar and also ordered the first 2,000.

Lim said the current property market is sustainable, with most developments registering good sales to date. “Despite the competition, many developers are doing well as they are taking the extra effort to conduct market research before launching their products,” he says, adding that product differentiation has also added value to the developments.

The group’s signature project in Section U9, Shah Aam, Cahaya SPK, has been enjoying brisk sales of the units launched so far. More than 100 of the 142 units of super link houses and 40% to 50% of the semi-dees open for sale have been taken up. The group also sold 50 of 80 bungalow lots, which were launched in the development last week. The superlink houses are priced at RM381,000 each, the semi-dees at RM520,000 each and the bungalow lots go for between RM42 and RM55 psf.

Lim says launches in Cahaya SPK for next year include semidees and bungalows by the lake as well as superlink houses as the demand for these types of properties is high. Prices have yet to be determined.

“We would also be continuing our ongoing project in Sungai Petani, Ambangan Heights, and target to launch a 15-acre high-end development in Johor Baru, capitalising on government
incentives and the growth of the Iskandar Development Region where it is located,” he says.

By theSun (by Yap Yew Jin)