This article first appeared in The Edge Financial Daily on June 27, 2019
KUALA LUMPUR: TA Global Bhd will be launching two projects in the Klang Valley — ALIX Residences in Dutamas, North Kiara and TA 3 & 4 in KLCC — in the second half of this year (2H19), with a combined gross development value (GDV) of RM2.9 billion.
Its chief executive officer Tiah Joo Kim said ALIX Residences, with an estimated GDV of RM507 million, will be launched on July 12, while the RM2.4 billion GDV TA 3 & 4 will be launched in the fourth quarter of this year.
“For the local [property] market, nothing has really changed. The market is fairly challenging. There is still an oversupply at this point of time,” he told reporters after the company’s annual general meeting (AGM) yesterday.
Despite the prevailing environment, Tiah is still “fairly confident” of TA Global’s products given their lower price point compared with the market average, as well as their strategic locations.
“At this point of time, property is a tough business. and people are going to have some reassurance that TA has a long track record. We are financially strong, and we will be able to execute the things we say and projects we do,” said Tiah.
Tiah added that the company is still actively looking for potential land banks in Malaysia and overseas.
Presently, TA Global has 286.87 hectares (708.88 acres) of land bank in Malaysia, with 241.91ha in the Klang Valley.
A total of 58.4ha in the Klang Valley and Johor are under planning and development.
The projects under planning are targeted for sales in financial years 2019 (FY19) and FY20, with an estimated cumulative GDV of RM15.6 billion, said Tiah.
TA Global also has unbilled sales of RM310 million.
Its net profit for the first quarter ended March 31, 2019 (1QFY19) declined 47.12% year-on-year to RM121.71 million from RM230.15 million.
Its quarterly revenue plunged 80.21% to RM193.86 million from RM979.55 million in 1QFY18.
Moving forward, Tiah noted that the property developer is also looking to launch another two projects next year.
TA Global will be launching Ativo Annexe @ Damansara Avenue, a 6.07ha mixed-use development with an estimated GDV of RM3 billion, and a 38.44ha township project in Kluang, Johor, with an estimated GDV of RM450 million.
Meanwhile, its non-independent non-executive director Datin Alicia Tan Kuay Fong said the government should not stop Chinese buyers from buying properties under the Malaysia My Second Home, as they may be able to alleviate the current property overhang.
“I believe that anyone comes into the country and make Malaysia their second home… chances are [that] they will buy a property. Once they buy a property, [it] means that they will also buy the white goods. They also may buy vehicle and it will stimulate [the economy] and clear the stocks and help to clear the [property] overhang,” she said.