PETALING JAYA: Kuala Lumpur-based affordable high-rise residential property developer, Radium Development Bhd, is set to list on the Main Market of Bursa Malaysia in the second quarter of this year, aiming to raise more than RM400 million, to fund its current and upcoming projects as demand continues to surge.
According to Radium Group managing director Datuk Gary Gan Kah Siong (pix), since the launch of its first project in Jalan Semarak in 2017, the company has had almost 100% take-up for its development units. Fast forward to October 2022, the company has achieved a total revenue of RM2.4 billion.
“For 2023, we are focused on the construction of our first prime development R Suites Chancery Residences that has a gross development value (GDV) of RM521 million and another development located in Salak South/Sungai Besi with an estimated GDV of RM1 billion,” he said in an interview with SunBiz.
The 2.18-acre Chancery project, a freehold development, consists of 944 residential suites and 145 hotel rooms. Radium intends to engage a well-known and established independent hotel operator to manage the hotel, which Gan said will generate revenue to cover the property’s operating expenses.
“Chancery project completion is anticipated by Q4’25, well ahead the contractual date of Q4’27 approved by the Ministry of Housing and Local government, demonstrating our commitment to completing and delivering the project well ahead of time,” he said.
Radium’s Salak South/Sungai Besi project, meanwhile, includes two property components – urban residences and affordable homes. With a total of 1,218 units for each component, the project is targeted to launch in Q2’23.
Radium is confident that it will achieve strong sales this year, thanks to Kuala Lumpur’s growing population, robust infrastructure, numerous job opportunities, and various government initiatives to increase homeownership among Malaysians.
“The key drivers for us this year would be the forecast sales take-up of 80% from Chancery and 60% from the future development in Salak South/Sungai Besi,” Gan said.
Due to Chancery’s strategic location and state-of-the-art modern facilities, Radium is confident that it will achieve an 80% market take-up by the end of 2023, with the remaining 20% to be achieved in 2024.
“It is strategically located 200m from the exit into AKLEH and less than 2km away from the exit into DUKE highway. It is also located just across KPJ Ampang Putri and less than 2km away from Gleneagles Ampang,” he said.
He added that inflationary pressures and rising interest rates have impacted the property market as he did not see property prices to go down in the future, posing a challenge for buyers.
“However, the location of the property is still the number one factor for a purchaser in deciding to own a property and this is where Radium has the upper hand as our developments are within the high demand area where job opportunities are at large,” concluded Gan.