Reliance Pacific lines up RM210 million launches in January-March next year

KUALA LUMPUR: Reliance Pacific Bhd plans to launch some RM210 million worth of properties in Port Dickson and Johor in January to March next year.
CEO Datin Irene Tan said the group is expected to launch the first phase of the Admiral Hill project in Port Dickson that has a gross development value (GDV) of RM140 million. The first phase consists of 92 villas.
It also plans to launch Zone 2 of Desa Impian, an integrated township in Bandar Tenggara, Johor, during the same time. Zone 2 has a GDV of RM70 million and comprises 148 units of double- and single- storey shop offices.
“Admiral Hill has a GDV of RM260 million and is situated within the marina integrated project of Admiral Cove, which has developed eight projects. Admiral Hill, which is in three phases, will be the ninth project,” Tan told reporters after the group’s AGM here yesterday.
Admiral Cove is focusing its resources in planning and obtaining development order for Admiral Hill, which will be marketed to foreigners. The Admiral Cove project has a GDV of RM600 million to RM700 million.
About 60% of the group’s revenue is from the tourism division, and the rest is from the hotel and property divisions.
Tan said the group is not scaling back its property launches but is likely to launch quite a lot of properties in 2016/2017, hence the revenue from property division is expected to increase then. “We’re waiting for the right time to launch the projects.”
She said the group is not just looking at properties but is also anchoring and leveraging on its hotel division to drive growth.
“Property is cyclical and goes through a gestation period whereas hotels, once established, will be able to provide consistent recurring profits and that goes well to give the company a good balance at any one time,” Gan said, adding that it is looking at owning and managing hotels.
“We’re also undertaking rationalisation exercises to tackle cost efficiency, better utilisation of manpower, increasing product yields and innovating new products, and extending market reach.”
Tan said the strengthening of the US dollar will boost tourist arrivals and this augurs well for its hotel business.