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IGB expect to maintain 2008’s growth rate

Posted on: May 31, 2009

Bernama – Thursday, May 28

KUALA LUMPUR, May 27 (Bernama) — IGB Corp Bhd hopes to maintain its last year’s performance with the earnings from retail and commercial divisions expected to outperform its property business.

Managing director, Robert Tan Chung Meng, said the company would reduce property launches this year based on the current economic backdrop,

“We expect to see a flat growth this year due to fewer property launches but other components (retail and commercial) will make up the shortfall,” he told a media briefing after the company’s annual general meeting here today.

He said the company has put on hold the development of its Mid Valley Parcel 3 and Stonor projects, which were scheduled to be launched this year.

“The gross development values of these two projects were about RM1.5 billion to RM2.0 billion respectively.

“However, we believed the retail income from the quality assets that we have (the Garden All-Suite Residences and North Office Towers) to kick off this year and will boost our performance,” he said.

Tan said IGB would continue to invest in the property markets abroad.

The company has already identified markets in Vietnam, Bangkok (Thailand), Australia and China but has yet to conclude any deals, he said.

“We are eyeing opportunities there. It could be either be joint ventures or we will own the property,” he said, adding that IGB’s construction of the 550-room hotel in Manila was progressing well and was expected to be completed by first quarter 2010.

Tan said IGB also planned to exit some of its hotel businesses.

“The company is going to sell its 910-room Renaisance Hotel which has an estimated value of about RM800 million and the RM200 million worth of MiCasa All-Suite Hotel,” he said.

Pre-tax profit for the first quarter ended March 31, 2009 rose to RM54.0 million from RM48.7 million in the same quarter of last year due to higher contribution from property investment and hotel division.

Revenue rose to RM165.6 million from RM162.0 million. — BERNAMA



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