Malton: No impact from luxury properties freeze

PETALING JAYA: Malton Bhd is not impacted by the government’s decision to freeze approvals for luxury property projects from Nov 1, as its properties cater mainly to the mid-class segment, with prices below RM1 million a unit; and those above RM1 million have received their respective development orders (DOs). 
A Malton spokesperson said the new ruling is vague, because it is not clear whether the freeze is a blanket ruling or on a case-by-case basis, and whether it is being implemented nationwide or only for Kuala Lumpur City Hall (DBKL) to halt approvals. The property developer said it hopes to obtain clearer guidance on the move.
“As far as we’re concerned, this (freeze) does not affect Malton at all for our current launches as the DOs have been approved,” the spokesperson told reporters after the company’s AGM today, adding that its ongoing project Bukit Jalil City, which has sold over 80% of Park 2 - Tower2 (324 units) since its launch in August, will not be affected.
“Our upcoming launches for the financial year ending June 30, 2018 (FY18), Duta Park and Rapid City Centre in Johor, even though it’s above RM1 million, this (freeze) does not affect us as we’ve gotten the DOs and building plans. So we’re not so worried about this. The new ruling won’t affect our current FY18 target launches.”
Malton plans to launch three properties with a gross development value (GDV) of RM1.3 billion in the current FY18 and has a remaining RM950 million worth of properties to be launched. It has a landbank of 370 acres with a potential GDV of RM9.2 billion in Johor and the Klang Valley and is on the lookout for more strategic landbank in the Klang Valley.
75% of Malton’s revenue comes from property development and the remaining 25% is from construction. The spokesperson said property development will remain a key contributor to Malton’s earnings.
“We hope FY18’s results will be better than FY17’s, driven by progressive billing of ongoing developments and upcoming launches. We have unbilled sales of RM1.2 billion, which will support our earnings for the next three years.”
Malton’s construction order book stands at RM1.8 billion, having secured six projects, including Pavilion Ceylon Hill, Pavilion Embassy, Pavilion Damansara Heights, Royal Pavilion Hotel and two others.
Meanwhile, Malton said it hopes the court case involving the proposed high-density mixed development in Taman Rimba Kiara will be settled by next year.
“We adhered to all authorities’ regulations and the DO has been approved and endorsed. The next judicial review is on Dec 13. We’ll only move on when the court case is settled,” said the spokesperson, but noted that no stop-work order was issued by the court.
It was reported that residents of Taman Tun Dr Ismail were granted leave by the Kuala Lumpur High Court on Aug 23 to pursue a judicial review against DBKL and the KL mayor.
The judicial review requests an order from the court to quash the conditional planning permission and DO granted by DBKL to property developer Memang Perkasa Sdn Bhd, which is 51% owned by Malton.