Gadang ... Jan10

Gadang Holdings Bhd s upbeat on the property outlook for 2010 and planning several new developments in the Klang Valley.

The company has 46ha of prime land in the Klang Valley, Penang and Johor for development. It was expecting the landbank to generate a gross development value exceeding RM700 million over the next five years.

The company, through development arm Gadang Land Sdn Bhd, will build medium- to high-end houses, condominiums, offices and shoplots. Gadang's ongoing developments are mostly priced in the medium range.

They include retail, office suites and three-storey superlink homes in Segambut, Kuala Lumpur; medium- and low-medium-cost apartments in Sungai Buloh, Selangor; and single-storey terraced houses and single-storey semi-detached houses in Rawang, Selangor.

However, Gadang will be moving to the Mines area in Seri Kembangan, Serdang, within the next 12 to 15 months to develop seven super-luxury bungalows, worth a combined RM40 million, or more than RM5 million each. The bungalows will be built on 74.8 sq ft of leasehold vacant land offered by a boutique developer in Mines.

Gadang's wholly-owned unit, Gadang Engineering (M) Sdn Bhd (GESB), will secure the land from Bluwater Development Bhd (formerly Mines Resort Bhd) as contra for debts owed by the latter.

Bluwater owes GESB some RM34 million for completing main building works two years ago for a commercial block and a tower featuring offices, serviced apartments, shoplots and facilities in Mines. Bluwater is a unit of Clearwater Group, controlled by Dian Lee Cheng Ling, eldest daughter of property tycoon Tan Sri Lee Kim Yew.

Meanwhile its and its joint venture partner Bukit Jerneh Quarry Sdn Bhd have received a letter of acceptance from Malaysia Airports Holdings Bhd for part of the proposed low-cost carrier terminal at the KL International Airport.

Its unit and Bukit Jerneh had received the letter for the site preparation, earthworks and main drainage for runway three and its associated taxiways at the new LCCT.

The contract, awarded on a 70:30 proportion to Gadang and Bukit Jerneh, was expected to be completed on Dec 18, 2010.

The contract is expected to have a positive impact on the earnings and net assets of the group for FY ending May 31, 2010 and 2011.