Dijaya: New projects may fetch up to RM2,500 psf

MARKET TREND: Developer upbeat on W Kuala Lumpur Hotel & Residences project

DIJAYA Corp Bhd plans to launch serviced residences in Kuala Lumpur at a whopping RM2,000 per square foot (psf) to RM2,500 psf.

Senior Dijaya Corp officials said such price is now the going rate for new luxury properties in the city centre.

"We are looking at that price range for now. There are some projects launching at RM2,500 per sq ft in the city centre. Since we are launching only next year, we may re-look the pricing then," said its executive director Koong Wai Seng.

Dijaya is developing W Kuala Lumpur Hotel & Residences at the site where the historical Bok House used to sit on Jalan Ampang.

The project encompasses a 55-storey block with the first few floors housing the six-star 150-room W Hotel, and the rest to be occupied by the residences.

There will be 353 units of the residences, with estimated gross development value (GDV) of RM900 million.

The project is slated for completion in 2016.

Koong is upbeat on sales, saying that Dijaya had received several en bloc offers for the residences.

"We are tagging on the W Hotel address, which is known worldwide," he said yesterday at the signing of Dijaya's RM500 million commercial paper/medium term notes (CP/MTN) programme.

The serviced residences are part of eight projects worth RM2 billion that Dijaya is launching between the end of this year and December 2013 in Kuala Lumpur, Kajang, Subang, Kota Damansara, Johor Baru and Kota Kinabalu.

The signing of the CP/MTN follows the completion of the company's amalgamation exercise in August involving the injection of RM1 billion worth of properties held privately by Dijaya chief executive officer Tan Sri Danny Tan Chee Sing.

The exercise helped Dijaya increase its landbank to 365ha in the Klang Valley, Johor, Penang and Sabah and which is to be developed over 10 to 15 years with a GDV of RM38 billion.

Dijaya deputy managing director Dickson Tan said part of the RM500 million (CP/MTN programme) will be used to develop projects and fund its expansion.

Dickson Tan said Dijaya is looking to acquire smaller developers and companies with sizeable landbank to become one of the country's biggest developers.

"Merger and acquisition is the next target for us to grow the company's business. There are several parties currently soliciting and talking," he said.

RHB Investment Bank Bhd and AmInvestment Bank Bhd are the joint lead arrangers/joint lead managers for the debt programme.

By Business Times