Group has already completed its 2nd water homes project
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(KUALA LUMPUR) Kuala Lumpur Metro Group (KL Metro) is eyeing China and Vietnam to expand its resort development business, said managing director Low Tak Fatt.
'We are still in negotiations with the local parties there. Once the project is firmed up, we will make an announcement,' he told a media conference here yesterday.
It is understood that if the negotiations were successful, it would be KL Metro's first venture outside Malaysia. At the press conference, Mr Low announced the completion of the company's second water homes project, the Legend International Water Homes in Port Dickson, Negeri Sembilan.
The first was the Legend Water Chalets. The resort will be managed by Legend Group of Hotels and Resorts.
Mr Low said a soft opening for the Legend International Water Homes was scheduled this Sunday and an official opening at mid-2010. 'Most of the buyers are from Hong Kong, UK, Singapore, United Arab Emirates and Macau. They are mostly private investors who buy the units and lease them back to us for a certain period,' he said.
He said the water home unit would offer a good investment with attractive capital appreciation potential as supply was limited.
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Mr Low said the occupancy rate for the Legend International Water Homes was expected to grow from 50 per cent targeted for next year to 63 per cent in 2012. He said KL Metro Group was upbeat about the resort business, adding that the strong demand for water homes was seen in the high room rates charged by resorts such as Pangkor Laut and Avillion.
'Our philosophy is to develop more high-end resort homes in Malaysia as well as abroad as there is huge demand,' he said.
He said KL Metro also planned to develop its third project, Hibiscus Garden Chalets, which would feature single-storey landed resort homes. 'The project, targeted for completion in two years, will have 74 units with a GDV of RM45 million (S$18.6 million),' he said.
On the Hibiscus Water Homes in Teluk Kumbar, Penang, Mr Low said the project was expected to be launched in middle of next year. According to him, the group has filed for the copyright to use the Hibiscus, the national flower, as its development model to enable it to build more resorts in other states in the future.
On whether KL Metro would seek a listing to raise capital, Mr Low said: 'So far we do not have plans to list as we are a small-scale developer.'
On the impact of the imposition of 5 per cent real property gains tax effective on Jan 1 next year, Mr Low said: 'It is not going to have impact on our buyers as the amount is small compared with the previous 30-15 per cent.'
He said the Budget 2010's allocation of RM899 million to boost the tourism industry was good to market the country as a holiday destination. 'The tourist arrival trend in Malaysia is expected to grow next year as the country offers a diversified culture and experience,' he said. -- Bernama
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