IJM Land moves on despite merger failure

An artist’s impression of IJM Land’s The Light Waterfront development in Penang.

PETALING JAYA: It is business as usual at IJM Land Bhd after a proposed merger between the company and Malaysian Resources Corp Bhd (MRCB) fell through due to their failure to reach an agreement on the definitive terms and conditions of the plan.

IJM Land managing director Datuk Soam Heng Choon said the developer had a lot on its plate, including about 30 existing projects and a number of new developments in the pipeline.


Datuk Soam Heng Choon ... ‘We have two greenfield developments in the Klang Valley and Johor.’

“For financial year 2012, we will be kept busy with RM1.5bil worth of project launches, including two greenfield developments in the Klang Valley and Johor,” Soam told StarBizWeek.

With a land bank of about 5,000 acres, which has a total gross development value (GDV) of some RM18bil, there are good values in IJM Land's assets.

The company launched RM1.3bil worth of projects in the first nine months of the current financial year ending March 31, 2011 (FY2011). Sales for the first six months ended Sept 30, 2010 amounted to RM700mil and analysts said the company was on track to achieve total sales of RM1.4bil for FY2011.

IJM Land turned in record sales of RM1.25bil in FY2010.

For FY2012, its new project portfolio will comprise the 2,000-acre Canal City in Selangor and the 1,188-acre Sebana Cove in Kota Tinggi, Johor. Soam said the Canal City was earmarked for launch in the second half of 2012. The massive township will have a GDV of RM6bil and will take 10 to 15 years to complete.

Located directly behind the mature Kota Kemuning township, the Canal City will turn IJM Land into one of the leading township developers in the Klang Valley. The company is now sorting out some land and project planning matters with the Selangor Government.

An earlier agreement with the previous state government involved a flood-mitigation project in the form of an 18km canal linking Sungai Klang and Sungai Langat. In return, the company will be awarded the land for development.

However, the new state government has decided that there was no need for the flood mitigation project. Therefore, in August last year, IJM Land signed a termination agreement for the canal privatisation project.

As for Sebana Cove, Soam said planning was in progress to develop the 1,188-acre land into an upmarket eco-friendly and health-cum-lifestyle themed residential and marina resort development. The 10-year project is expected to be launched later this year.

Soam said IJM Land also planned to launch its maiden 7-acre project in Vietnam in March or April.

The development comprising four blocks of high-rise residential apartments as well as retail and commercial properties is in Nhon Trach city centre in Dong Nai province.

In China, IJM Land plans to undertake a RM500mil upmarket residential and retail development in Changchun, the capital city of Jilin province in the northeast of China.

Locally, the company is busy with its flagship waterfront development, The Light, featuring residential, entertainment, business and hospitality facilities in Penang. With a GDV of close to RM6bil, the 152-acre mixed residential and commercial development is the largest (in terms of development value) in IJM Land's portfolio. It will take 12 to 15 years to complete.

Under The Light Collection III, new launches will comprise condominiums and water villas priced from RM1,252 per sq ft.

IJM Land also has new project launches in Shah Alam, Seremban, Malacca, Kota Kinabalu, Sandakan and Kuching.

By The Star