SDB pioneers niche property developments in the region

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KUCHING: Selangor Dredging Bhd’s (SDB) bold move to venture into the property market at the start of the millennium has borne fruit as its current position as a niche property developer shows.

PREMIUM PRICE: Teh says that the company’s projects command a 20 per cent premium in terms of pricing.

Formerly a dredging company, it aligned its business operations to focus solely on property leasing, hotel management and development via its wholly-owned subsidiary SDB Properties Sdn Bhd (SDB Properties).

Although SDB Properties represents the new face of SDB, it remains true to the core values of setting new benchmarks, giving priority to innovation and quality. Its commitment to quality and care was established with a Defects Liability Period (DLP) that has been extended to 36 months, compared with the requisite 24 months which was offered to all homes built by the group.

“We do not build townships and we do not sell thousand of houses, the most that has been on our record list is about 300 units at any one time. In comparison with similar players in the market, there is always a 20 per cent premium from the products we sell,” said SDB managing director Teh Lip Kim.

During the year under review March 31, 2010, the group achieved an overall net profit of RM17.96 million on the back of a RM234.4 million turnover against the previous corresponding period’s RM17.24 million pre-tax profit on a turnover of RM164.07 million. SDB registered a turnover of RM19.29 million and a pre-tax profit of RM11.2 million.

“Our main leasing property, WSD, along Jalan Ampang continued to perform well. Its location, which is in close proximity to Kuala Lumpur City Centre (KLCC) coupled with the services provided in the building, continues to register an occupancy rate of 95 per cent,” revealed Teh.

SDB Properties, faired better with a turnover of RM195.12 million and a pre-tax profit of RM19.13 million. The improved result was due to the contribution made by the group’s property development arm.

“We foresee that in the future SDB Properties will contribute 80 per cent of the group’s revenue and this will include overseas venture,” revealed Teh.

During an exclusive interview with The Borneo Post recently, Teh mentioned that while the worst of the economic downturn appeared to be over, the year ahead would still be challenging. “While things are expected to improve and pick up, we will remain heedful of the market and take this into consideration when planning for property launches,” she added.

To-date, SDB has a total of five on-going projects with two in Singapore, which boasts a total gross development value (GDV) of RM1.35 billion. It has completed four property projects since its first AmanSari project in 2004.

Subsequently, in March 2005, SDB launched its flagship project, Park Seven.

“This development won the FIABCI Malaysia Property Awards for Best Residential Development (High Rise) Category in November 2009 as well as the highly coveted international FIABCI Prix d’Excellence Award Runner Up in May 2010,” said Teh.

Park Seven was also awarded the Singapore Institute of Architects Design Award 2010 and received the highly Commended Award at the Asia Pacific Residential Property Awards 2010 in the high rise residential development category.

As a company setting out to make its mark on the crowded property scene, customer satisfaction and feedback were also important to SDB. Teh and her team considered buyers’ views and made the necessary changes.

“Each niche development comes with a very strong concept. We focus a lot on the products and the overall project to ensure that the premium that we put on the product is justified. For the price buyers are paying, we want to give them homes that they can live in without having to do expensive renovations,” said Teh.

At the time of writing, the group had launched several developments including 20trees West, located adjacent to 20trees in Taman Melawati which is a 10-acre development comprising 48 units of spacious bungalows with swimming pools.

She further explained that this development would also have vantage views of the Melawati quartz ridge. The homes in 20trees West, which are sized from 6,000 square feet onwards would be landscaped with tropical canopy trees and plantings. “This concept was developed for residents who enjoy the greenery. The GDV for this development is approximately RM170 million.”

The launch of Dedaun is scheduled to take place this coming Friday. The development, located in a quiet green enclave along Jalan Ampang comprises of only 38 units. The units are larger in size measuring 3,200 square feet upwards and the concept of the development is based on the quiet elegance of homes in the 1970s.

“We are in the midst of developing the concept for our third parcel of land in Singapore located on Balestier Road, near Novena. We will be developing smaller apartments with space-efficient features. We hope to launch this development by early 2011, depending on market conditions,” she said.

The Group also owned a boutique-concept hotel named Hotel Maya, Kuala Lumpur. It has won the coveted Malaysia Interior Design award for hotel category, the Singapore Institute of Architects Award for Interior Design and the Pertubuhan Akitek Malaysia Excellence in Architecture Awards 2006 for Best Interior Design.

Teh further said, “Our aim in all activities will be to venture into exciting niche developments with new and innovative ideas, whether in design and concept, or in the use of materials.”

In relation to property development, the group is continuously sourcing for landbanks to develop homes that would meet the standards of discerning customers. The group is also continuously exploring opportunities to expand its property development activities within the region.