I-Berhad sees equal revenue from 3 key segments by 2018

SHAH ALAM: I-Berhad, which is developing the i-City township here, expects its three key business segments to grow and contribute equally to revenue by 2018.

The three business segments — property development, leisure and property investment — currently contribute 70 per cent, 20 per cent and 10 per cent, respectively, to the company’s revenue.

I-Berhad has invested RM70 million to develop the leisure component, comprising theme parks and hotels.

It is also scaling up its property development activities due to strong demand for residential and commercial assets in i-City.

The company is planning to launch around RM500 million worth of properties every year.

“Our property development is held up reasonably well. In four years, we hope to see an equal contribution from all the business lines,” said i-Berhad’s deputy chairman Datuk Eu Hong Chew.

Eu said this was an ideal mix for I-Berhad as it reflected the company’s strategy of giving equal focus to all businesses.

I-R&D Sdn Bhd, a unit of I-Berhad, inked an agreement with Hilton Worldwide Manage Ltd yesterday to manage a new RM200 million four-star hotel at i-City.

The hotel is expected to open by the end of 2018.

The agreement was signed by director Tey Siew Thuan on behalf of I-R&D, while Hilton was represented by its director of development for Asia, Alex Dadak.

Eu said the four-star hotel would enhance the reputation of i-City as a business-cum-leisure hub in the western corridor of the Greater Kuala Lumpur.

The hotel development is part of the RM1 billion investment property portfolio that I-Berhad is setting up to provide recurring income for the group.

This portfolio includes a 1.5 million sq ft regional shopping mall, known as CentralPlaza@i-City, three hotels, 8,000 car park bays and
data centres.

The 300-room hotel will cater to the business community and visitors to the 10.1ha i-City theme park and complement Best Western i-City Shah Alam, which is already in operation.

For Best Western i-City, the company is looking at 70 to 80 per cent occupancy rate for next year, Eu said.

There are also plans for a third hotel by 2020, boosting the overall i-City development, he added.

Meanwhile, Eu said I-Berhad’s recent corporate exercise had raised some RM800 million to fund its projects over the next five years.

~ By BUSINESS TIMES