Property division helps I-Bhd swing to the black

PETALING JAYA: I-Bhd posted a turnaround in net profits in the third quarter ended Sept 30 of RM3.95mil from a net loss of RM1.28mil a year earlier.

In its filing with Bursa Malaysia, the developer of iconic i-City said the vast improvement in profit was due to mainly a higher profit recognition from the property development division.

Revenue for the quarter was 204% higher at RM16.32mil against RM5.36mil previously. The increase in revenue was on profit recognition from on-going projects from the property development division as well as contribution from the new theme park under the leisure division.

To reward its shareholders, I-Bhd is distributing a special share dividend of one treasury share for every 14 shares held.

Executive chairman Tan Sri Lim Kim Hong said: “By giving our shareholders these treasury shares, the total value of their holdings will increase as there is no dilution in share value at all.”

The entitlement for the dividends will be on Dec 12.

Lim added that i-City had now evolved into a RM5bil urban cyber centre township, which has been designed as an “international business hub by day” and “lifestyle haven by night”, with residential, commercial and leisure components.

Moving forward, he said profitability would continue to grow with income streams from the property and leisure divisions.

Earlier in May, the group launched high-rise condominiums i-Residence, which has a gross development value (GDV) of RM232mil. All the 173 units available in the west wing of the development have been sold out.

An equally promising take-up rate was shown by the higher-end units the east wing as well as the 20 villas which opened for sale in August, Lim added.

All 220 small office versatile office units with a GDV of RM64mil have been fully booked at the launch in August.

The company expects to launch the first phase of the 12-acre small office home office development, which consists of 956 units with a GDV of RM317mil in December. The entire projects will be launched in three phases from 2012 to 2014.

By The Star