KUALA LUMPUR: RH Consortium Sdn Bhd, a Perak-based construction and property development firm, aims to transform the state’s landscape to cater to a more modern lifestyle in line with the trend of sustainable living ecosystem.
Group chief executive officer Hamzarul Hazmir Hamdan said besides its ongoing first flagship development project called Riverbank Cove in Manjung, the company also plans a similar development on another piece of land in Meru, Ipoh.
He said the company has already obtained the development order from the authorities for the project on the 7.28-hectare (18-acre) land in Meru, which is expected to have a gross development value (GDV) of RM680 mil. Riverbank Cove, by comparison, is eight times bigger and has a GDV of RM2 bil.
“We want to focus on developing low to medium-cost apartments in Meru due to the locals’ difficulty in buying landed properties as prices have surged about 50% in Ipoh in the past six years.
“Therefore, it is about time for Ipoh to undergo a change in landscape where properties become more affordable for the people, who mostly buy them to live in and not as an investment,” he told Bernama.
Hamzarul Hazmir said although the shift to high-rise housing may be slow among the locals, he anticipates that buyers will be more receptive in five years to come as land prices rise further.
He said the first 2.43 hectares of the Meru land will be developed into affordable high-rise housing where 500 units will be in the range of RM150,000 to RM200,000 each under the People’s Housing Project (PPR).
Another 500 units will be under the Malaysia Civil Servants Housing Programme (PPAM) and priced at between RM250,000 and RM300,000 each.
He said these 1,000 units of affordable housing will be built as part of the total 2,500 residential units planned for the project.
The balance of 4.86 hectares, he said, will be used to build the remaining residential units as well as commercial developments, which may include a boutique hotel.
However, details on those projects have yet to be finalised, as the company is still in discussion with the Housing and Local Government Ministry and other relevant stakeholders.
“As a young player in the industry, we want to be dynamic and explore any possible opportunity that arises as we see the demographics are changing to suit the modern lifestyle that is constantly evolving.
“We hope that in the fourth quarter of this year, we can have a soft launch for the integrated project in Meru,” said Hamzarul Hazmir.
He said once the plan kicks off, he anticipates it will take five to seven years to be fully developed.
Meanwhile, asked if the company would be interested to be listed on the local stock exchange, he did not discount it, having recently raised RM200 mil through sukuk with Kenanga Investment Bank Bhd.
He said both parties have discussed about an initial public offering but realistically, it would probably materialise only in the next three to five years.
“Right now, what is important is for us is to prove ourselves and have a good track record as a Bumiputera company.
“This includes by participating in other engineering and construction projects besides our own and having joint ventures with the big players for projects such as the East Coast Rail Link and Bandar Malaysia,” he added. – Jan 19, 2020, Bernama
