I-berhad sees higher loan approvals for its properties

Last update: 26/06/2018

SHAH ALAM, June 26 (Bernama) -- Property developer, I-Berhad believes that the property sector is in the midst of an upward trajectory going by the increase in loans submissions and approval rate for the company's residential properties.

Deputy Chairman Datuk Eu Hong Chew said the approval rate stood at 46 per cent in 2015, 36 per cent in 2016 and rose to 47 per cent last year.

I-Berhad saw loan submissions of RM690 million and SPA worth RM320 million in 2015, loan submissions and SPA amounted to RM850 million and RM310 million respectively in 2016, while in 2017, the numbers stood at RM570 million and RM270 million respectively.

"We see higher loan approvals based on the pattern and it would be good for the property sector," he told reporters after the company's annual general meeting here, today.

He said the company's performance in 2017 was in line with the growth plans set by the group five years ago.

"Over the past five years, we have charted a path that has led to the property development segment being the biggest contributor.

"In 2017, this segment accounted for 90 per cent of the group turnover, and we expect this profile to be maintained over the next five years," he said.

As of end-2017, I-Berhad pumped in some RM490 million into the property investment segment with many of these properties coming onstream over the next two to three years.

"The mall and the first convention centre are expected to open at the end of this year, while the Double Tree Hotel will be opened in 2020," he said.

Having laid the foundations for both the property development and property investment segments, Eu said I-Berhad is now shifting focus to improve its shareholders' returns.

Its return on equity (ROE) over the past three years had averaged at about seven per cent per year, said Eu.

"We are now targeting to improve the ROE to 10 per cent for the next five-year plan.

"We believe this is a realistic goal notwithstanding the current outlook of the Malaysian property sector as in the next five years, we will see stronger earnings contributions from both the property development and property investment segments," he added.