LOH & Loh Corp Bhd, a construction firm which had its first taste of success
in property development, aims to earn up to a quarter of its profit from this new
business three years from now.
It is already starting on its plan to build houses in Selayang next and is scouting
for more small parcels of land in the Klang Valley, managing director Jason Loh
said.
"If done right, property development can be more profitable than our usual business.
Money aside, we also enjoy doing this and the customers are happy. There's a lot
of satisfaction," Loh said in an interview at its project site in Kuala Lumpur.
Loh & Loh is mainly involved in the construction of dams, water treatment plants,
drainage, sewerage and golf courses.
The company's first property project in Taman Melawati, near Setapak - a high-end
residential development where unit price averages RM1.8 million each - was a hit
with local residents seeking to upgrade to bigger houses.
The general manager of its property arm, Marc Loh, said the 87 units of semi-detached
houses and bungalows are 90 per cent snapped up, although the show unit will only
be launched this weekend.
The key selling point for the RM120 million development known as the Riverview Kemensah,
he said, is a 650-metre river walk which the firm had spent RM3 million to develop.
Marc said the river park, built along a natural stream with live fishes and surrounded
by lush greenery, helps to enhance the value of the property.
"The buyers are happy as prices have appreciated since we started the project last
October. We are able to build everything fast because Loh & Loh is a construction
group and we have the resources," Loh said, adding that it is a natural progression
for the firm to diversify into property development.
Next, it is planning on a gated residential project on a 13.7ha site in Selayang.
The company also has another 12ha in Nilai and four hectares in Perak.
It is actively seeking small pockets of land in the Klang Valley for its future projects, he said.
"The company has a strong balance sheet. Going into properties is synergistic as
we can use the existing equipment, manpower and expertise. The only thing new to
us is marketing," he added.