I-BHD expects RM40m in annual rent from i-City in Shah Alam

By THE STAR

KUALA LUMPUR: I-Bhd expects to rake in RM40mil in annual rental income from its proposed RM400mil shopping centre in i-City in Shah Alam.

Chairman Datuk Lim Kim Hong said the 280 shop lots and other anchor space would be for lease only.

The shopping centre that has yet to be named would have total net lettable area of a million sq ft (inclusive of the City Walk pedestrian mall).

Work is expected to begin by year-end and scheduled for completion in 2010.

Speaking after the company AGM on Tuesday, Lim said I-Bhd hoped to have a reputable foreign investor with an international brand name to help develop the shopping centre.

"Internal funding will not be a problem as my own company, Sumurwang Sdn Bhd (a major shareholder of I-Bhd), alone has the financial resources to undertake the project," he said.

Lim said the RM1.5bil i-City would provide the group with an alternative source of income through property development and management and enable it to extend its digital business by providing various services and applications into the 72-acre freehold development in Section 7, Shah Alam.

He said revenue from the sales of the landed shop offices and stratified retail suites would contribute significantly to the group's turnover and profits.

The group reported turnover of RM18mil for financial year ended Dec 31, 2006 (FY06), compared with RM63mil in the previous year.

Pre-tax profit in FY06 was RM2.8mil compared with RM7mil in FY05.