IREKA SEES ASSOCIATED COMPANY, ASEANA PROPERTIES LIMITED, CONTRIBUTE SIGNIFICANTLY TO ITS PROFITS
Kuala Lumpur, 30 August 2016: The current downturn in the economy coupled with the soft property market as well as poor consumer and investor confidence, has seen Ireka exercise caution in implementing its investment and construction plans. Over the last year, the Group has focused its activities on securing approvals from the relevant authorities for its mid-market developments in the Nilai and Kajang areas, to be ready to launch them when the economic climate improves. The deliberate positioning of the Group’s developments in the mid-market segment under its zenZ brand is in keeping with the growing demand for properties in these sectors in the Klang Valley.
Despite the soft property market, Ireka feels confident to officially launch its first and only freehold, multi-functional industrial units, ASTA Enterprise Park in Kajang on September 6-8. This project is located in the established industrial area of Bukit Angkat and close to the well-known Jade Hills township development. ASTA Enterprise Park was previewed 3 months ago and of the 18 units available, 45% of sales have already been secured.
Over the next 18 months Ireka Group’s construction division, Ireka Engineering & Construction Sdn Bhd (IECSB), also expects to commence a number of internal projects with a construction value of RM700m.
Ireka owns a 23% stake in Aseana Properties Limited (ASPL)* and the latter’s divestment plans are forging ahead which will undoubtedly benefit Ireka in the longer term. Its prestigious current development, The RuMa Hotel and Residences in the heart of KLCC, is well underway and set to be completed in late 2017. A significant milestone has been its successful disposal of the Aloft Kuala Lumpur Sentral Hotel (Aloft) by ASPL RM418.7 million. As a result, ASPL contributed RM28.6 million to Ireka’s profit before tax for the quarter ending 30 June 2016. It is still hopeful that ASPL will make a capital distribution of USD10m this year.
According to Ireka’s Managing Director, Mr Lai Voon Hon, “There is no doubt that not being able to launch any developments in the last year has been a small set back but we are confident that our cautious approach of waiting for the market to stabilize before launching our upcoming projects will pay off. I am particularly looking forward to our foray into the mid-market properties in Nilai and Kajang which will be new and exciting for all of us at Ireka, and which will hopefully result in good shareholder value.”
For further information on ASTA Enterprise Park, please contact the Sales Office on 03-8741 6632.
*Note: Aseana Properties Limited is a London-listed property developer initiated by Ireka in 2007, to undertake property development activities in Malaysia and Vietnam. Ireka’s subsidiary, Ireka Development Management Sdn Bhd is the exclusive Development Manager.
ASTA Enterprise Park in Kajang – Ireka’s first foray into the industrial sector
dwi@Rimbun Kasia in Nilai, Negeri Sembilan
The RuMa Hotel and Residences located at Jalan Kia Peng, Kuala Lumpur