GEORGE TOWN: Hunza Properties Bhd has deferred its RM400 million Gurney Paragon Mall project, the construction of which was earlier scheduled to start last September.
Hunza executive chairman Datuk Khor Teng Tong said the deferment decision was due to the escalating costs of raw materials and construction.
“We will re-evaluate the situation in the first quarter of next year and decide if we want to commence the project then.
It is pointless to go ahead with the project now and we will wait till the prices are down to saner levels.
“Property sales have slowed down due to depressed global economic outlook as well as uncertainties in national environment.
We maintain our view that strong growth will only re-emerge when these uncertainties are addressed,” Khor said after Hunza’s AGM here yesterday.
As of now, Hunza has more than RM260 million of unbilled sales to cushion the impact of economic uncertainties over the next few years.
The Gurney Paragon Mall, with a gross built-up area of one million sq ft and lettable area of 700,000 sq ft, (6.5 hectares) was originally planned for completion by 2011.
Nonetheless, Khor said two towers consisting of 220 residential units at the same project were now under way, having started piling works in August last year and were now in the sub-structure stage.
With over 50% sold, the residential units would be completed by the end of 2010, as scheduled.
Meanwhile, 60% of Hunza Properties’ 119 residential units of the luxurious Infinity project in Tanjung Bungah have been sold and 50% of the project, which is targeted for completion by August next year, has been bought by foreigners under the Malaysia My Second Home (MM2H) programme.
Khor said Hunza was targeting Japanese investors to take up units at both Infinity and Gurney Paragon, as many had expressed keen interest during his visit to Tokyo, Japan, on a trip organised by FIABCI recently.
He said with the yen appreciating by more than 20% against the ringgit, the Japanese were keen to invest in real estates in Malaysia, namely Penang.
Khor said Hunza was also on the prowl to increase its landbank on Penang Island and in the Klang Valley.
“We will embark on acquiring land in prime areas in Penang, focusing on the areas from Jalan Sultan Ahmad Shah to Batu Ferringhi,” Khor added.
However, he said Hunza had yet to decide if these would be developed into residential or commercial projects.
Currently, Hunza’s landbank consists of 500 acres in Bertam, 300 acres in Sungai Petani, 40 acres in Juru, six acres in Segambut, 10 acres of Alila Two site and another 60,000 sq ft near Marina Bay.
Source: The Edge Daily
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