TA Ent plans RM1b real estate project in KL

TA Ent plans RM1b real estate project in KL
By Chong Jin Hun
jinhun@nstp.com.my


May 3 2007


TA Enterprise Bhd (TAE) will draw from its hotel management experience abroad to establish and maintain an estimated RM1 billion real estate project comprising mainly serviced apartments in Kuala Lumpur.

On the drawing board are three towers - A,B, and C - to be collectively called "Idaman Bintang". It will sit on a company-owned 1.2ha freehold site fronting Jalan Imbi near the Dorsett Regency Hotel.


Blocks A and B, says TAE executive chairman Datin Alicia Tiah, have been earmarked for recurring income-generating serviced apartments.


The developer plans to retain tower A, which will be run like a hotel. Block B, meanwhile, is for sale at a minimum RM800 a sq ft, but TA will earn management fees for the property's maintenance.


The strategy may be replicated in other countries like Vietnam.


The established stockbroker, which owns the Radisson Hotel in Sydney, Australia, will develop block C of Idaman Bintang at a later stage to allow surrounding properties to appreciate in value.


"Idaman Bintang should be able to reach RM1 billion. Tower A will be kept for recurring income, but we want to manage block B so that we can earn the fees.


"The two blocks will only have food and beverage facilities but not retail. I don't want to build block C now," Tiah told Business Times in Kuala Lumpur.


Tiah did not specify other details like the built-up and timing of the project, which will be solely undertaken by TA. However, she said tower B will be the first to be launched among the three entities.


Going forward, TA's potential initiative in Vietnam may be pursued via joint ventures. "It is not so soon. I am open to ideas and partnerships," she said.


Other real estate jobs by TA include the RM294 million "Idaman Residence" luxury condominiums opposite the prestigious Petronas Twin Towers, and the approximately RM800 million "Seri Suria" mixed project in Bandar Sri Damansara, Kuala Lumpur.


TA's emphasis on real estate since 2002 allows the company to reduce dependence on income from its stockbroking and financial services.


Property development and investment constituted 40 per cent or RM140.3 million of TA's RM354.5 million revenue in the fiscal year to January 2007, according to its filings to Bursa Malaysia.