Wednesday, April 25, 2007

SNS News : Targeted RM40mil Rental Income from I-City, Shah Alam

I-Bhd expects to rake in RM40mil in annual rental income from its proposed RM400mil shopping centre in i-City in Shah Alam.

Chairman Datuk Lim Kim Hong said the 280 shop lots and other anchor space would be for lease only. The shopping centre that has yet to be named will have total net lettable area of a million sq ft (inclusive of the City Walk pedestrian mall). Work is expected to begin by year-end and scheduled for completion in 2010.

Speaking after the company AGM yesterday, Lim said I-Bhd hoped to have a reputable foreign investor with an international brand name to help develop the shopping centre.

”Internal funding will not be a problem as my own company, Sumurwang Sdn Bhd (a major shareholder of I-Bhd), alone has the financial resources to undertake the project,” he said.

Datuk Lim Kim Hong: »We are in final talks with anchors and major tenants «
Lim said the RM1.5bil i-City would provide the group with an alternative source of income through property development and management and enable it to extend its digital business by providing various services and applications in the 72-acre freehold development in Section 7, Shah Alam.

He said revenue from the sale of landed shop offices and stratified retail suites would contribute significantly to group turnover and profits.

The group reported turnover of RM18mil for the financial year ended Dec 31, 2006 (FY06), compared with RM63mil in the previous year. Pre-tax profit in FY06 was RM2.8mil compared with RM7mil in FY05.

Regroup Associates Sdn Bhd managing director Allan Soo, who is the shopping centre's retail consultant, said the centre would be the “next generation of super malls” with broadband connectivity, a centre for ICT retailing, and a unique acre-sized pond in an open-air central atrium.

It will consist of 3½ levels, two department stores, 10 major anchors, 2,500 car parking bays and will be integrated with City Walk and a four-star hotel. The projected RM40mil annual rental income from the i-City shopping centre, he said, was an “achievable and a conservative estimate.”

“We are in final talks with anchors and major tenants,” he added.


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