BANDAR Raya Development Bhd plans to launch RM1.5bil worth of property projects in the Klang Valley over the next two years, including the first phase of Capital Square valued at RM400mil.

Chief executive officer Datuk Jagan Sabapathy said the company expected profits from these projects, except for Capital Square, to be about 30% of their gross development value.

The projects include condominiums in Jalan Binjai, Bukit Kiara and Taman Duta. These are in addition to the mixed residential, golf course and hotel projects the company is developing in joint venture with the Defence Housing Authority of Lahore in that Pakistani city.

The group expected 15% profit from the revived RM1.2bil Capital Square project, located at the junction of Jalan Munshi Abdullah and Jalan Ampang, Jagan told reporters after unveiling the Capital Square development master plan in Kuala Lumpur yesterday.

In addition to the RM180mil profit expected from the sales of properties in Capital Square, Bandar Raya would receive RM15mil recurrent rental income annually from the retail mall there, he said.

Jagan said the project would be developed over five years. The first phase, which would include a condominium block, four ''signature'' office buildings and a retail mall, would be launched in August.

The second phase would consist of another high-end condominium block, three office towers and two signature office buildings.

Jagan said a luxury five-start hotel could also be part of the development on the 15.2 acres of prime freehold land. ''However, nothing is definite yet. We will monitor the market conditions and then decide,'' he said.

He said the revival of Capital Square would enable Bandar Raya to unlock the earlier investment that had been made. The project would have shorter delivery time of 18 to 24 months because certain construction work had already been completed, he added.

Jagan said given its clean balance sheet, the group could raise borrowings to finance its projects.

Chairman Datuk Mohamed Moiz said it was the right time to revive the project because demand for office space had shown nascent signs of growing. ''There is demand for quality residential properties in the city centre,'' he said.

Moiz added that Bandar Raya's 40-year track record in property development would be a good selling point for its projects.

Source : The Star   3/6/2004