AQRS on the up and up?

Gabungan AQRS Bhd CEO Datuk Azizan Jaafar says that its E'Island affordable housing project in Puchong, Selangor and The Peak, a high-rise residential project in Johor Bahru, will generate RM641 million in operating cash flow over the next four years.

The Edge reports that affordable housing project E'Island has received a good response, according to Azizan. The project has received over 2,000 registrations for 1,140 units available. Sale of The Peak are expected to be lower, as a high-rise, high-end residential project in Johor Bahru. This is a market segment that is not performing well, due to oversupply.

CBRE|WTW's Johor Bahru director Tan Ka Leong said the vacancy rate of of the states high-rise residences is expected to top 50% for the first time in 2019. More supply wil added to the market, some 10,500 units.

"The company is being realistic for its Johor development, expecting a low take-up rate of about 15% in 2019, and gradually increasing in the coming years. 

"We believe the company can hit 15% take-up rate this year, due to its strong proposition (pricing, value and location less than 8km from Woodlands Checkpoint). It also plans to offer a rent-to-own scheme, which is expected to boost sales," says Farhan. 

Azizan says that the group will not be buying land, but will be partnering with landowners for future projects. The publication reports that he says the group has almost RM1 billion in gross development value, and targets to sell RM500 million worth of properties this year. 

The 1.14 billion contract from Prasana Malaysia Bhd for construction and completion of guideways, four stations and park-and-ride facilities for LRT Line  has caused AQRS to lose market value, due to the review of the LRT 3 project by the Ministry of Finance. RM150 million worth of works has been completed, say analysts cited by the publication.

AQRS is also developing the One Jesselton Waterfront mixed-use project in Kota Kinabalu which is part of the Kota Kinabalu Port redevelopment project being undertaken by Suria Capital, where a new central business district will be developed.