Since the Covid-19 outbreak in March 2020, business may have slowed for many organisations, but integrated builder Chin Hin Group Bhd has bucked the trend and is actively pursuing expansion.
Chin Hin Group has only purchased controlling holdings in three companies this year: kitchen cabinet and wardrobe manufacturer Signature International Bhd, Kayangan Kemas Sdn Bhd, and Chin Hin Group Property Bhd (CHGPB), formerly Boon Koon Group Bhd.
The locally produced building material specialist, which got its start in 1974 as a small hardware store in Alor Setar, Kedah, has since grown into an integrated developer with a variety of businesses that include building material manufacturing and trading, real estate development, building and construction, home and living, as well as solar energy.
Additionally, CHGPB has amassed landbank in key areas like Serendah in Selangor, Cyberjaya in Selangor, Jalan Kuchai and Bangsar South in Kuala Lumpur.
According to Chiau Haw Choon, managing director and executive director of Chin Hin Group, the landbanking activities for CHGPB will continue, and the growth momentum will continue in the following three to five years.
There is never a bad time.
In a market plagued by pandemics, this newcomer’s aggressive acquisitions have surely drawn attention.
What has prompted this 37-year-old developer to act with such audacity when his most recent accomplishments in the real estate industry include Novum Bangsar South in Kuala Lumpur, a joint venture project with Kedah-based Eupe Corp Bhd, and G Residence near Kuchai Lama in Kuala Lumpur, as well as two high-rise residential projects that are still in the planning stages, 8th & Stellar in Sri Petaling, Kuala Lumpur,
Chiau responds, “I am an entrepreneur. Entrepreneurs are typically upbeat and visionary individuals. There is just never a terrible time, in my opinion. Any time is simply a time to carry out a specific action.
“Like now is a good moment to build up our asset and land bank, concentrate on digitization, and work on our books. Since we believe it is not a suitable moment for new launches, we did not introduce any new advancements either last year or this year, says Chiau, who is also the son of the group’s co-founder and deputy chairman Datuk Seri Chiau Beng Teik.
This is particularly true for the real estate development industry, as buyers would like to see the developments, exhibit apartments, speak with the salespeople, or take brief tours of the neighborhood—all of which are prohibited during the times when movement control orders are in effect.
As a result, Chin Hin Group has changed its focus to asset building in anticipation of a market recovery in 2022.
“Given the state of the market, we anticipate that next year will be a year of recovery, so the most crucial thing for us to do right now is to amass landbank and carry out our project plans,” he says.
Chiau estimates that it will take between six and twelve months to plan the project and submit it for approval. “I would have missed the boat if we had adopted a wait-and-see strategy and had begun purchasing [property] just the next year.”
Expanding its presence in the Klang Valley
Currently, the estimated gross development value (GDV) of our undeveloped landbank is RM3.5 billion. He says, “This will keep us occupied until 2027, but he won’t specify how big the landbank is.
CHGPB announced earlier in February of this year that it intended to spend RM269 million to purchase 81.9 acres of land in the Klang Valley in order to develop five real estate projects. It also stated that it intended to launch projects worth RM3.73 billion in GDV over the following two years, including a township development in Rawang.
By the fourth quarter of this year, CHGPB hopes to present a high-rise residential project in Seri Kembangan, Selangor, before the year ends in 2021.
The freehold construction known as Quaver Residence consists of two 40-floor serviced apartments with 684 units totaling built-ups ranging from 1,017 square feet to 1,850 square feet as well as a few shop spaces. It will be finished by 2025 and will start at RM500,000 per unit.
According to Chiau, “we will be unveiling a minimum of three projects in the Klang Valley next year.” One of the projects that CHGPB had originally planned to announce this year has been delayed to 2022 owing to market conditions, he adds.
The project is a 34-story office building with a net sellable area of 213,657 square feet in Bangsar South. The site was 0.53 acres when it was first acquired, but it is currently 0.48 acres because a portion of it was given up for a light rail transit (LRT) construction. The KL Gateway is immediately nearby. By 2025, the development is anticipated to be finished.
One of the office tower’s distinctive selling qualities is that it will have easy access to an LRT station thanks to a link bridge that connects it to Southview Apartment and KL Gateway Mall.
Although businesses have begun implementing a hybrid of work-from-home and work-in-office arrangements, he notes that after the economy was reopened, there were still needs for offices.
“Although I personally like working remotely and can have meetings at any time or place, I still miss having face-to-face interactions with coworkers and business partners so that I can learn more about them and their needs. This is something that cannot be replaced, claims Chiau.
In Kinrara, Puchong, Selangor, we also have a high-rise residential development. The project is anticipated to have a GDV of RM400 million. It is situated on a freehold land adjacent to an LRT station and Giant Kinrara. Additionally, this will be our first launch in Puchong, he adds.
The freehold serviced apartment, which will comprise two 43-floor towers and 833 units, is expected to be finished by 2026. Prices for the units are anticipated to start at RM350,000.
In addition to these two projects, CHGPB is working hard to create a township in Rawang with a GDV of RM909 million.
The 60-acre freehold land is close to Templer Park and the Rawang Bypass. Right now, our initial two phases of development will focus on the townhouse and Rumah Selangorku projects. When we complete the planning, more information will be made public, he promises.
Chiau continues, saying that CHGPB has already begun organising the new launches for 2023. With a projected total GDV of RM1 billion, there will be integrated developments in Old Klang Road, Kuala Lumpur, and Cyberjaya, Selangor.
“At the moment, we are concentrating on the Klang Valley’s growth routes. Having said that, if the proper opportunity arises and fits into our overall growth strategy, we do not rule out the prospect of acquiring land in other states,” adds Chiau.
It’s a momentous year for Signature International in 2019.
Regarding the most recent addition to the group’s primary business, Signature International Bhd, the biggest producer of kitchen cabinets and wardrobes in Malaysia, Chiau said there are plans to increase the company’s market presence in 2019.
“In the first quarter of next year, we’re going to introduce a new business model. The business model for Signature Kitchen will change to one of design and construction. In addition to design-and-build services, there will also be furnishings items for people wishing to beautify their homes, he continues.
The concept was inspired by client complaints about the difficulty they had finding interior designers and suppliers on their own, as well as by the opaque price structure, erratic delivery schedule, and subpar workmanship. This prompted the team, according to Chiau, to realise there was a great opportunity to provide homebuyers a novel customer experience.
This, he continues, entails creating a brand-new showroom with a built-up area of 50,000 square feet to display various design themes for consumers’ reference, in-house designers who provide consulting services, and a part for ready-made furniture.
This one-stop shop will provide services for all aspects of your home, including design and construction. One thing we want to emphasise is transparency. For the buyers to choose from, every item will be listed in the quotation, he explains.
He claims that RM40 million will be invested in this new business model to modernise this established home service industry and strengthen Signature’s market position.
Incorporating solar power into real estate development.
The solar energy industry has been a consistent source of recurring revenue for the Chin Hin Group.
Its order book, which totals more than RM500 million, includes a RM175 million, 50 megawatt solar park project in Perlis. As part of its plans to construct Malaysia’s largest sustainable affordable township, Lagenda Properties Bhd has also selected Solarvest as a partner in solar photovoltaic (PV) system development.
“We may include a solar PV system as a feature in our upcoming real estate developments. We anticipate that adoption of solar energy will increase in popularity and become more widespread as energy costs rise,” Chiau notes.
source from EdgeProp