Home

 

Alerts
Email / SMS

 

Infozone
Corporate Information
Financial Calendar
Dividends & Capital Changes
Board of Directors
Key Management
Business
News Room
Exchange Filings
Corporate Governance
Code of Business Conduct and Ethics

 

Downloads
Corporate Presentation
Corporate Factsheet
Circulars & Prospectuses
Annual Reports
Analyst Reports

 

Financials
Statements of Financial Position
Statements of Comprehensive Income
Quarterly Earnings

 

 

Home / 2014: Annual Report: Managing Director’s Message

Print This Page

Managing Director’s Message

The dampened sentiment for real estate purchases resulted in the overall property sector becoming rather subdued especially towards the second half of the year under review. Even so, demand in the affordable properties segment remained sturdy.

For more than 20 years, Tambun Indah has abided by the principle of providing properties that are of distinctively-high quality and yet still within the means of the population. We are pleased that this principle has served us well and gained us a loyal following in our target market through the years.

Operations Review

Tambun Indah’s Ongoing Projects

The challenging demand outlook in the year under review led Tambun Indah to adopt a greater degree of prudence and selectivity in launching new properties.

To this end, the Group unveiled a total of six new projects in FY2014 – namely Camellia Park, Permai Residence, Pearl Harmoni, Bukit Residence, Raintree Park 1 and Pearl Avenue (Phase 2) – with cumulative GDV of RM500.2 million.

I am further pleased to note that the Group recorded sales exceeding 880 units of new properties, with total value of RM429.0 million. By comparison, new property sales in the previous year comprised 1,058 units with total value of RM495.7 million.

As at 31 December 2014, the Group had RM1.2 billion worth of ongoing projects, primarily located in Mainland Penang.

Of this, Tambun Indah achieved commendable take-up rate of approximately 75.7%, which points to the buyers’ sustained demand despite the tough operating environment.

The unbilled sales of RM427.4 million as at 31 December 2014 is slated to be recognised over the coming two to three years.

• Simpang Ampat

The Group’s flagship township of Pearl City is situated in Simpang Ampat; an up-and-coming area that enjoys the accessibility from the Penang Second Bridge.

The seven years of Pearl City’s development has seen the delivery of more than 1,355 units of residential and commercial properties as at end-2014, coupled with more than 1,600 units of residential and commercial properties under construction, this will result in an increasingly vibrant population in Pearl City in years to come.

It is heartening to note the still-encouraging demand for the Group’s various launches in Pearl City. This is most clearly demonstrated by the increasing take-up of ongoing projects (namely Pearl Residence, Pearl Impian and the first phase of Pearl Avenue) as well as the positive response to the Group’s most recent launches of Pearl Harmoni and the second phase of Pearl Avenue in the year under review.

Additionally, Tambun Indah has made tremendous progress in the construction of the GEMS International School campus within Pearl City Business Park, which is on track for completion in mid-2015 for its official opening in September 2015. Touted as the first full-facility international school in Mainland Penang, GEMS International School Penang would be among the key pillars that forms the integrated township of Pearl City.

• Butterworth

Having already delivered a number of property development projects in the established town of Butterworth, the Group continued to stamp our track record by launching Camellia Park, a high-rise development comprising 121 units of apartments ranging from 1,100 to approximately 1,750 sq ft.

Camellia Park is slated for completion in 2017.

• Penang Island

Straits Garden features high-end executive / studio business suites, condominiums and apartments, within the high-growth city of Penang Island. The Group has recorded tremendous progress in the construction of Straits Garden, which is targeted for full completion in 2016.

• Bukit Mertajam

Tambun Indah launched two new projects in Bukit Mertajam in FY2014: Permai Residence and Bukit Residence.

While Permai Residence consists of 51 units of double- storey semi-detached and terrace homes, Bukit Residence comprises 122 units of luxurious link homes. Permai Residence is due for completion in 2015 while Bukit Residence is expected to be completed in 2017.c

Growth Strategies

The opening of the Sultan Abdul Halim Mu’adzam Shah Bridge in March 2014 is anticipated to bring about positive impact on the state. For one thing, the Penang Second Bridge (as it is popularly known) aims to alleviate the traffic congestion between Penang Island and Peninsular Malaysia. Not only that, it also aims to facilitate greater economic growth in Mainland Penang.

Notably, several key domestic and foreign investments closely followed this development, indicating investors’ affirmation for the additional Island-Mainland connection.

The rising property prices in Penang Island, together with the accelerating pace of job-creation and the Government’s ongoing infrastructure development efforts in Mainland Penang, would naturally result in sustainable demand for residential properties on Mainland Penang, supported by increasingly-vibrant commercial centres.

With this in mind, Tambun Indah intends to stay true to our core competency, that of developing affordably-priced properties to meet residents’ housing requirements.

Therefore, we have lined up several launches with cumulative GDV of approximately RM500 million in the current financial year ending 31 December 2015 (FY2015), consisting mainly of subsequent phases of residential and commercial developments in Pearl City.

At this juncture, the Group has pipeline launches of approximately RM2.9 billion across 453 acres of undeveloped land in Penang.

Also, we will continue seeking suitable partners for Pearl City Business Park – the 107 acres purpose-built commercial centre in the heart of Pearl City – so as to achieve our objective of becoming the preferred lifestyle hub in Mainland Penang.

Simultaneously, we will constantly keep up our efforts to increase our available landbank that would carry the Group over the long term.

We believe that these initiatives, strengthened by our positive brand image as a responsible and quality-centric property developer, would serve us well in the coming years.

Conclusion

All said, we are grateful for your support thus far, and look forward to your ongoing partnership going forward.

Thank you.
Ir. Teh Kiak Seng
Managing Director