KUALA LUMPUR (Dec 20): IGB Corp Bhd, the property firm that made its name developing Mid Valley City, is set to team up with EcoFirst Consolidated Bhd to undertake a RM400 million high-end condominium project in Kuala Lumpur next year, according to sources.

Sources told The Edge Financial Daily that the two will form a 50:50 joint-venture (JV) company to jointly develop a parcel of land measuring four acres (1.62ha) in Jalan Batai, Damansara Heights here over the next three years.

The all-residential project, designed by a local award-winning architect, will have no more than 150 units of luxury condominium of 3,000 sq ft each, expected to be priced above RM3 million per unit.

“They (IGB and EcoFirst) expect a solid take-up rate because only limited units are available. We are talking about [a] very luxurious and low-density condo, but their price-per-sq ft is lower than what the neighbourhood gets,” said a source.

It is learnt that the project, consisting of six blocks of low- to mid-rise exclusive condominium buildings, carries an estimated gross development value (GDV) of over RM400 million. Of the six, four will be eight-storey low-rise condominiums, while the remaining two will be 16-storey mid-rise units.

With a five-level basement car park, each unit will be allocated four spacious parking lots, whose collective size will be equivalent to six normal parking lots.

IGB and EcoFirst are targeting existing bungalow owners in Damansara Heights and Bangsar as potential homebuyers, considering that the bungalows in the area are mostly around 30 years old.

“It is estimated that there are about 1,000 bungalows in the surrounding areas. Most of them (bungalow owners) are in their 50s to 70s now, and their children are all grown up. Therefore, it might be a good idea for them to sell their bungalows and buy the new condos,” a source explained.

The four-acre land on which the project will stand is valued at about RM60 million now and owned by IGB. It will be injected into the JV company at a later date for the development.

Adjacent to the site is the Aira Residence, a 105-unit luxury condominium project that has been delivered by Selangor Properties Bhd.

This upcoming JV with IGB will be EcoFirst’s first partnership with another property developer. The two property firms crossed path when EcoFirst inked a deal to buy a 25-acre piece of land in Ulu Klang, Selangor, from IGB last year.

EcoFirst, which owns and operates commercial-retail mall South City Plaza in Seri Kembangan, has completed its maiden development project in Ipoh, Perak, dubbed Upper East @ Tiger Lane. The project, which has a GDV of more than RM300 million, consists of 529 exclusive luxury apartments housed in five 12-storey blocks. All units have been sold and delivered.

EcoFirst is currently focusing on its new township project known as Ampang Ukay, which fetches a GDV of RM5 billion. The 87-acre prime land in Ulu Klang, including the 25-acre tract from IGB, has been earmarked for a major commercial and residential development.

It is expected to be the catalyst for the group’s future growth, generating handsome positive earnings over the next 10 to 12 years.

This article first appeared in The Edge Financial Daily, on Dec 20, 2016. Subscribe to The Edge Financial Daily here.

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