Asas ... July10

Asas Dunia Bhd expects to benefit from numerous development projects worth hundreds of millions of ringgit being lined up near the Penang Second Crossing (P2X).

The company has some 600 acres (240ha) of landbank located near P2X, representing some 42% of its total landbank of 1,440 acres that have an estimated combined gross development or sales value (GDV) of RM2.9 billion.

Many were sceptical about the completion of the P2X but with the government awarding the contract (via Jambatan Kedua Sdn Bhd) to IJM Corp (Bhd) worth RM350 million recently, the doubts have now been cleared.

The completion of the bridge will surely propel the developments in Seberang Perai Selatan, and ADB will take advantage of this.

P2X is slated for completion by end-2013. IJM’s wholly owned unit IJM Construction Sdn Bhd has been awarded the contract to construct the Batu Kawan Expressway which involves the construction of a new dual two-lane carriageway of 5.7km with a cloverleaf interchange and four bridges.

This would open up many industrial areas which would see jobs being created and translate into demand for housing. This in turn will augur well for Asas Dunia which now has eight on-going mixed development projects comprising 1,118 units of residential, commercial and industrial properties with an estimated total development value of RM250 million.

The company recently launched a RM55 million GDV, 267-unit housing project in Desa Impian, Seberang Perai Tengah which will be developed over the next five years.

ADB will also launch the “Dove Residences” with a GDV of RM130 million in Nibong Tebal next month and a RM33 million GDV low- to medium-cost housing project in Sungai Duri in Seberang Perai Selatan.

Other notable projects under Asas Dunia include a 125-unit housing project Taman Impian Indah with a GDV of RM24 million and a 150 unit housing project in Simpang Ampat with a GDV of RM35 million, both of which are in the Seberang Perai Tengah district.

Asas Dunia will continue with its concept of “partial build, then sell” where only projects that have reached at least 50% construction stage will be open for sale. Although this approach would result in higher holding costs for Asas Dunia, it would avoid late delivery, garner better selling prices and provide a hedge for Asas Dunia against potential escalating construction costs.