8 February, KUALA LUMPUR – Chin Hin Group Property Berhad (CHGP, 7187), a Bursa Main Market listed company primarily involved in assembly and sales of new and rebuilt commercial vehicles as well as property development, aims to generate RM3.73 billion in gross development value (GDV) from on-going and future developments in the next 2 years.
In a press statement today, CHGP said that it is spending approximately RM268 million to acquire 81.9 acres of land for the development of five different property projects situated in the Klang Valley. This is in line with the Group’s overall strategy to aggressively expand its property development segment.
CHGP Executive Director Mr Chiau Haw Choon said: “We intend to expand our portfolio of developments to various growth corridors in the Klang Valley such as Serendah, Bandar Kinrara, Bangsar South, and Cyberjaya.”
The types of developments that are being proposed include townships, serviced apartments, mixed-use developments and offices.
“With the increasing prospect of effective Covid-19 vaccination this year, there is optimism that the property market will see a turning point soon. On top of that, historic low interest rates and various homeownership incentives will certainly bring some vibrancy to the market. As noted by Rahim & Co in its Property Market Review 2020/2021, the property market will most likely gain momentum by year 2022.
As a developer, this is a good time for us to seize opportunities with the currently attractive land prices and expand our landbank at strategic locations. This will ensure that the Group has a clear and sustainable growth plan ahead. We are targeting to launch these properties in 1 to 2 years’ time in line with the expected recovery of the property market,” said Chiau.
A filing with Bursa Malaysia on 8 February 2021 showed CHGP’s latest proposal to acquire an 11.53-acre land in Cyberjaya for RM50.22 million, as part of the Group’s continuous efforts to replenish its landbank at better and accessible locations for potential development. Barring any unforeseen circumstances, the acquisition is expected to be completed by the second quarter of 2021.
“Estimated to generate RM1.1 billion in GDV, CHGP has proposed to construct a mixed-development on this freehold land that is currently vacant. We chose this because of its strategic location in Cyberjaya which has seen significant development over the years driven by the investment and presence of global tech companies, prevalence of universities and other amenities, and well-planned infrastructure. The proposed acquisition to build up the land bank and property development pipeline of CHGP is expected to contribute positively to the Group in the next 5 years and improve its earnings visibility,” he added.
CHGP has two ongoing projects – Aera Residence and 8th & Stellar. Aera Residence is a serviced apartment project in Petaling Jaya, with an estimated GDV of RM332 million. Meanwhile, 8th & Stellar is a two-tower mixed-use development comprising serviced apartments, duplex lofts, office space and shoplots on a 2.2-acre leasehold tract in Sri Petaling. Its estimated gross development value is RM470 million. The take-up rate for both projects currently stand at 98% and 69% respectively.