Aspen Group: Growing fast, listing this year.

I wrote about a RM299,000 condo in Penang by Aspen in 2014. It garnered lots of interest within the first few hours. Read here: Buying Penang condos? 14,000 views in 3 hours says it all  Aspen is considered a new developer based in Penang and in a recent news announcement, its chief executive officer Datuk M Murly said the group intends to list publicly within this year. It is currently in advanced stages of discussion with Singapore authorities and this should be completed within the Q2 2016. Besides that, they have also started talking to some banks in Malaysia. The listing would enable the group to generate fund for new projects for the group beginning 2017 onwards.

According to Murly, some of its upcoming developments include the RM620mil Vertu Resort in Batu Kawan, the RM135mil mixed-development Beacon project in Sungai Pinang, and the RM637mil HH Residence scheme in Tanjung Bungah. The total gross development value for these would be RM1.392 Billion. This is no longer considered small for such a young developer. By 2017, it will launch the Nouvelle Residence in Subang. Within 2015, Aspen achieved a total sales of RM900 million which is considered extremely healthy with many developers cutting their targets or scaling back launches etc. For 2016, the group is targeting to achieve a RM400mil to RM500mil revenue and a net profit of about RM90mil. This is around 20 percent which is healthy.

Vertu Resort will be located wihin the Aspen Vision City project in Batu Kawan. Read here: Vision City, the VERVE and IKANO for mainland Penang Vertu Resort is the first residential development in Aspen Vision City. It will be previewed to existing customers and interested parties from Jan 22 – 24. (Yes, that’s just 2 weeks away). It will also be the first condominium project in Seberang Prai with a Green Building Index (GBI) certification. According to information from penangpropertytalk.com, the indicative price is between RM350 – RM380 per sf. No further information is available but I think it may be trying to appeal  via affordability factor as well as the fact that buyers may be buying into the future IKEA site. Read here: 2018 IKEA Batu Kawan, RM8 billion Development, 10 years to complete

Frankly, not many companies would be looking at listing in the current situation. Especially when the stock market just got a hammering days ago. However, for companies with healthy profits with an eye on gaining some public funds for its future expansion, I think it is still okay. Perhaps this is what Aspen is banking on and I think the Singaporean authorities would also welcome any potential listings as the number of listing these days are much smaller than previously. Listing in Singapore has its advantages too. This will give it more visibility among Singaporean buyers who may be thinking about Malaysian properties. If you like their story but not their property, perhaps can consider buying their stocks within 2016. Happy buying.

written on 6 Jan 2016

Next suggested article: Penang Turf Club, PTMP and Batu Kawan

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