Pelangi to launch JB project in Q3

Pelangi to launch JB project in Q3

By THE STAR

KUANTAN: Pelangi Bhd will launch its new commercial project, Pelangi Junction, in Johor Baru in the third quarter of this year.

Chief executive officer Azmar Talib said the project would be the latest instalment of its commercial portfolio, which was currently contributing 50% to company revenue.

“We have yet to determine the gross development value of the project as we are trying to get the best value for our property but construction cost will be around RM200mil,” he told reporters when met on the sidelines of Malaysian Unit Trust Week (MSAM) 2007 yesterday.

Comprising mixed office and retail units on about six acres, Pelangi Junction was expected to be completed in three years, he said.

Currently, the company has a total land bank of more than 2,000 acres, which are likely to be developed in the next 10 to 15 years.

On construction costs, Azmar said the company had yet to face any increase following the Government’s move to raise the ceiling prices of steel bars and billets by up to 20%.

“However, for future development, it is definitely going to affect us,” he added.

On a proposal by the market players to scrap the ceiling price of steel bars and lift the import ban on raw materials, Azmar said: “The concept of having a ceiling price is good to protect people like developers and also end users but it depends on how the things are managed.”