The group remains resilient and develops better customer engagement strategies.
The Covid-19 pandemic has had a significant impact on the real estate development, the housing market and the construction industry. However, despite the difficulties and obstacles, IOI Properties Group Bhd (IOIPG) persevered and maintained its fortitude to deliver resilient financial results and continue to provide better services to all relevant parties. The nation's transition towards endemicity augurs well for all IOIPG’s business segments and this is clearly reflected in the group’s recent financial results for the financial year that ended June 30, 2022.
To make that a reality, IOIPG adopted the Vision Statement – Trusted, which aims to transform the brand into one that is more dynamic, inventive, and trustworthy. Through the realisation of the vision, IOIPG continually engages the entire team to share the company's aspirations and to cultivate trust with stakeholders by highlighting the significance of respect for one another and honesty in all IOIPG business dealings. The group is stepping up its efforts to increase customer engagement and provide better services to all its stakeholders.
The group’s sizable and increasingly matured land bank in Malaysia is expected to contribute positively to its future prospects. Over the next three years, some of IOIPG’s major township developments such as IOI Resort City Putrajaya, Warisan Puteri Sepang, Bandar Puteri Puchong and Bandar Putra Kulai would continue to provide the group with the agility to offer suitable products and capitalise on opportunities from the differing segments. This will enable the group to put in place new initiatives to further unlock the value of its landbank as the number of physical communities working and living within its developments grow.
Better Customer Experience
Even though the group faced difficulties due to the pandemic, the strategies employed by IOIPG paid off as the group's financial performance remained healthy and promising. In FY2022, IOIPG's revenue increased to RM2.59bil as a result of all business segments improving their bottom lines and registering the group with solid total group profits of RM688mil.
IOIPG continues to see a strong recovery in the retail and hospitality segments in Malaysia since the full withdrawal of movement restrictions which augurs well for the group. The group is expecting higher recurring lease income from the recent opening of IOI City Mall Phase 2, the largest mall in Malaysia with a net lettable area of 2.5 million sq ft. The recent GBI certification of IOI City Mall marks an exciting milestone in the sustainability journey for IOIPG. It reflects the group’s commitment to operating responsibly, minimising the impact on the environment, as the group continues to enhance its value proposition while safeguarding the environment for future generations.
In line with IOIPG’s transformation going forward to consistently provide excellent service, IOI Sales Galleria and Show Village in Bandar Putra Kulai, Johor was developed to showcase the group's 5,700-acre flagship development. The IOI Sales Galleria and show village aim to showcase the proximity of the township development’s amenities such as golf, sports, shopping, education, dining, entertainment and healthcare as it reflects the group’s efforts in elevating customer experience through better service quality and customer engagement.
Furthermore, the group's digital transformation has been accelerated to keep up with market trends. For instance, to ensure that property handover experiences were seamless during the pandemic, the group digitised the process by introducing electronic Vacant Possession (eVP), a unified platform that allowed customers to schedule the handover of their property at their convenience. To bolster the sales process, IOIPG has the IOI eMarketPlace application to manage the sales e-booking and e-documentation process apart from the IOI Community app for property management, facilities booking and visitor management.
The customer experience at IOI Malls and IOI Rio, Puchong has been enhanced with the introduction of digitalised initiatives such as the License Plate Recognition (LPR), a cashless and ticketless parking system and IOIShopz, an online e-commerce mobile application for product purchase as well as points collection and reward redemption.
Building a brand abroad
IOIPG’s strategy of leveraging on geographical diversification by expanding to Singapore and the People’s Republic of China (PRC) has enabled IOIPG to spread its operating risk. The group is currently building IOI Central Boulevard Towers, a Grade A, Green Mark Platinum Certified office in Marina Bay, Singapore. The development, which is expected to be completed by the end of 2023, offers a total net lettable area of 1.29 million sq ft of office space with 120,000 sq ft of lush landscaping, an urban sky park with a 200-metre jogging track, rooftop gardens, and childcare facilities among other amenities.
Last year, the group acquired a mixed-use development site comprising residential and hotel components at Singapore’s Marina View enclave. The proposed development is expected to meet pent-up demand for city living opportunities within the Central Business District of Singapore as the last residential launch in the vicinity was Marina One Residences in 2014.
In the greater east, IOIPG will grow its hospitality segment in Xiamen with the addition of the Sheraton Grand Hotel in Xiamen, a new 5-star hotel on its roster. The hotel, which has 370 rooms, is expected to open in the second half of 2023 and will be managed by Marriott International.
Back in Malaysia, the group has lined up a variety of developments to be added to its upcoming launches. There are plans to build affordable service apartments, double-storey terrace houses, townhouses, and cluster semi-detached and bungalow homes within Klang Valley alone.
In FY2024, the group is looking to launch a 368-acre industrial park in Bukit Changgang. The industrial land will be a mixed-use development which offers various industrial and commercial products that are either ready to use or built to suit. To take things to the next level, two transit-oriented developments (TODs) are also being planned for Bandar Puchong Jaya and 16 Sierra, Puchong South.
Apart from Klang Valley, IOIPG has recently launched three phases of landed homes in Johor, consisting of single and double-storey terrace homes. The launch coincided with the grand opening of the new 9,200 square feet IOI Sales Galleria in Kulai. The take-up rate for the newly launched landed homes has come in very strong at 80%.
The group consistently strives to provide the highest quality in any development or services offered to ensure that the experience of the customer is well-cared for. Therefore, customers and product owners of IOIPG can anticipate better technology infrastructure and digital solutions as its business innovates and evolves by leveraging on technology.