CONTRACTOR-cum-property developer Fajarbaru Builder Group Bhd has fared reasonably well in its Australian venture with its recently completed Paragon Queen Street development in Melbourne having fetched a take-up rate of 93%.
Boasting a gross development value (GDV) of A$182.84 mil (RM584 mil), this is Fajarbaru’s second development after the success of its first sold-out project called ‘Gardenhill’ – also situated in Melbourne – in 2017.
Fajarbaru is fairly confident of the sales of the remaining units of its Paragon Queen Street project which has won an award at the Asia Pacific Property Awards 2018-19 and iProperty Development Excellence Award 2019.
The group has since embarked on its third development, a project comprising 15 residential two-storey houses along Merri Creek in Northcote, Melbourne.
“The construction from Northcote has not yet started, but interest has been encouraging due to the location,” revealed Fajarbaru group CEO Datuk Seri Eric Kuan Khian Len.
“Scheduled for a soft launch sometime in mid-2021, this project will increase our presence in Melbourne’s property market while expanding the Group’s earning base.”
The estimated GDV for the Northcote development is A$40.20 mil (RM128.4 mil).
Back home, the group recently completed its maiden development in Malaysia, Rica Residence @ Sentul, on schedule with handover started in mid-March this year.
The handover was originally due to take off three months earlier but was delayed due to movement control order (MCO) restrictions.
“The property division remains a significant revenue generator for the group in addition to our core business in construction,” justified Kuan.
“Although the COVID-19 pandemic has certainly affected the property segment, there are positive signs that market conditions will improve and that we can capitalise on it as long as we adapt and innovate accordingly.”
Boasting a GDV of RM292.49 mil, Rica Residence @ Sentul, the latest take-up rate of the project stands at 82% (including booking).
“We are currently in the midst of releasing the remaining developer units,” Kuan pointed out.
“We believe there will be a strong take-up after MCO – the near-completion of the MRT2 (Mass Rapid Transit Line 2) project in 2022 is also a positive boost for us to do so smoothly. We target to sell off the remaining units by end-2021.”
At 12.01pm, Fajarbaru was up 1 sen or 1.41% to 72 sen with 1.08 million shares traded, thus valuing the company at RM269 mil. – April 30, 2021