Dijaya aims to launch RM1b India project in 2010

DIJAYA Corp Bhd (5401) is targeting to launch Tropicana Residences, its first foreign housing project worth almost RM1 billion in Hyderabad, India, in the second half of next year.Selangor-based Dijaya, renowned for its flagship 250ha Tropicana Golf & Country Resort in Petaling Jaya, will develop the project on a joint venture (JV) basis with India's Telangana Spinning & Weaving Mills Ltd (TSWML).Dijaya had signed a development agreement with TSWML in late 2006.

A JV company, known as Dijaya-Malind JV (Mauritius) Ltd was formed to develop the 10.2ha of land owned by TSWML, in Balanagar in Hyderabad.Dijaya holds majority of Dijaya-Malind.Managing director Datuk Tong Kien Onn said the JV was slow in launching the development due to 'road blocks' along the way especially during the planning stages.

"We are still waiting for certain approvals. We have applied to increase the height of the buildings. The layout approvals are also pending. We are not pushing for it as the market in India is soft at the moment," Tong said.Tropicana Residences will feature 17 blocks of 10-storey and 18-storey apartments, with a total of 2,500 units.

There will also be 500,000 sq ft of commercial space for shopoffices and a retail mall.Tong said the development will take 5-6 years to complete, depending on market conditions."We expect the project to contribute positively to our earnings. We will look at India as a long-term market.

We will monitor the progress of Tropicana Residences before expanding further," Tong told Business Times.Dijaya has, since the 1990s, harboured intentions to develop properties abroad. It was exploring countries such as Myanmar, China and Vietnam but halted plans when the economy slowed.

Tong added that Dijaya will consider exploring Vietnam and China when the market improves."When we go overseas, we prefer to do middle to middle-upper developments, specifically residential with some commercial elements," Tong said.Tong said Dijaya will raise new funds or borrow, for overseas developments.Locally, Dijaya's projects are centred in Petaling Jaya.

Besides the Tropicana Resort development, its projects are Damansara Indah Resort Homes, Damansara e-Business Park and Tropicana City.