Managing director Low Gay Teck said the project had a gross development value of RM400mil and would comprise mainly of studio units and serviced apartments.
“There is strong pent-up demand for such properties in the area,” he told reporters after L&G’s EGM yesterday.
Low said the project was expected to be completed by late 2013 or early 2014. “It will consist of about 1,000 units and would sell for RM500 to RM600 per sq ft.”
He added that L&G was confident of a good take-up rate for the project as many properties in the vicinity were valued at RM800 per sq ft.
Low said L&G had proposed to acquire a piece of land in Ampang for RM55mil cash for the project, which is expected to be developed by Elite Forward Sdn Bhd.
Elite Forward is a 50:50 joint-venture between Synergy Score Sdn Bhd, a wholly-owned unit of L&G, and Forward Splendour Sdn Bhd, a company related to Mayland Parkview Sdn Bhd, which in turn is a major shareholder of L&G.
Low said the proposed purchase of the land in Ampang for RM55mil and the joint venture for the project were well received by the majority of L&G shareholders.
“They (shareholders) asked many questions about the two proposals at the EGM but were generally supportive of the proposals,” he said.
A shareholder, who declined to be named, said he wanted to know whether the land would be purchased at fair value and in the interest of shareholders.
“We are told that despite the proposals being a related party transaction, the land will be acquired at market price and will benefit all stakeholders, including shareholders. We will see,” he said.
According to Low, property will continue to be L&G’s core business, contributing over 50% of its revenue. Other divisions in the group include education.
On its financial performance, Low said the company was expected to perform fairly well in its current financial year ending March 31.
By The Star
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