1. COVER STORY
14 | SmartInvestor | 06 . 2016
The Making
of a Modern
Day Empire
Full of ideas and vision to transform
the way people in Penang live, work
and play, the story of Dato’Alex Ooi
and Ideal Property Group is one that is
synonymous with how ambitions and
ideas work best. ByTony Goh

2. 15SmartInvestor | 06 . 2016 |
However, with its involvement in
some high profile projects and some
of the exclusive properties in prime
locations to be introduced to the
market soon, the group is now very
much in the big boys league.
Businesswise, the company
is the largest builder of private
condominiums and serviced
apartments on Penang Island,
supplying around 70% or an average
of 3500 units out of the total of 5,000
units coming into the market annually.
This earns Dato’Alex Ooi, the
Founder and Executive Chairman of
Ideal Property Group the moniker
“Penang’s Condo King”.
“Since 2014, we have slowly ramped
up our total launches from 2400 over
units per year to 3,200 units last year,
which are almost 100% sold. This year,
we aim to offer 3,600 units worth RM2.8
billion in gross development value
(GDV) from five or six projects,”said Ooi.
According to Ooi, there are another
10,000 units which will have an
approximate GDV of RM3.8 billion
waiting to be launched, adding that the
group had also developed 3,498 units
of affordable projects on the island for
the last two years.
Ideal Property has 300 acres of
land bank on the island, where the
developer has some 25,000 units of
properties planned for the land bank.
“We have about 20,000 units that
have been approved for more than 10
projects, and this will last us for another
three to four years”said Ooi.
Amidst current lethargic investment
sentiments and high mortgage
application rejection by banks, Ooi
believes that there is still demand
despite the current market conditions.
However, buyers are now more
cautious and are looking for five “Ps”
when it comes to property, namely
the right products and pricing,
place, producer (read developer) and
package offered.
Thus, Ideal, with an established and
trusted brand name, will pay more
attention to product design, securing
prime and good locations for its
projects and offer attractive incentives
and the selling prices.
Playing its part in helping to meet
the demand for affordable housing,
something that is especially hard to
come by within Penang Island, Ideal
established the “I-Condo” series –
condo at affordable price tag, where
all developments under I-Condo
are located on prime locations and
delivers quality and value at an
affordable price.
The affordable condominium built
by the group will be using high quality
construction materials to provide value
to homeowners. Moving away from the
mainstream affordable tag that comes
with negative stigma, the surroundings
have been carefully planned to include
schools, markets and other facilities for
homeowners to live, work and play.
It also ensures that the surrounding
infrastructures are well-planned and
improved as an added convenience
for residents such as the widening
of major roads and additional access
points to ease traffic congestion.
I
deal Property Group, a privately held Penang-based developer,
has a low profile presence and operated outside the radar that
allows it to grow, diversify and thrive into an integrated property
player without the unwanted scrutiny and pressure.
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3. COVER STORY
16 | SmartInvestor | 06 . 2016
Southwest in Demand
Ideal’s main advantage is its strong
foothold in the southwest district of
Penang, which includes Bayan Baru,
Bayan Lepas (including the Free Trade
Zone area), Bukit Jambul and Balik
Pulau.
At the moment it has launched two
projects under I-Condo: One Foresta in
Bayan Lepas and I-Santorini at Tanjong
Pinang. For the past 10 years, it has
successfully developed more than
20 projects locally and abroad which
totals up to around 5000 residential
units. Another significant on-going
project is Ideal Vision Park in Sungai
Ara.
The first phase, known as Tree
Sparina (568 condo units), situated in
Bayan Lepas and next to the airport,
is now nearly completion with prices
from RM500 to RM550 per sq. ft.
Ideal has also acquired a 12-acre
seaside parcel near Queensbay Mall
in Bayan Lepas in 2013. It plans to
reclaim about five acres of land for a
private beach. To be named Queens
Waterfront, Ooi says the initial plan for
this prime development involves of a
high-end seafront condominium, and
the developer is targeting both local
buyers and buyers from outside of
Penang.
Most of the buyers for Ideal Property
Group’s projects are from Penang Island
and about 20% are from Butterworth,
Sungai Petani and Alor Setar.
“All our developments are gated and
guarded. Our condominiums come
with full facilities.
“We believe in the quality of our
houses and we want our buyers to
know that the quality is assured when
they buy a property from Ideal. We
have also rolled out our customer
relationship management programme
and I personally head it,”said Ooi.
In recent years, the group has shown
a rapid growth rate with significant
achievements that are considered as
some of the best in the industry, which
include recording a profit margin of
29% for its first master development
project with the return of investment
being fully covered within two years.
Financially, the group’s performance
had exceeded 100% of growth
continuously from year 2011 to 2013
and 60% of growth in year 2014,
achieving an approximately 15-18%
p.a. of capital appreciation for landed
properties, and 7.5% for condo
annually.
There are still lots of old money in
Penang and people still prefer to invest
in properties, partly due to cultural
preference of having physical assets
as part of their asset or investment
portfolio.
Aside from land scarcity on the
island and lower land prices, the
Penang government has also reduced
the number of hillside developments.
So I believe the southwest district is
the next hot location,”Ooi said, adding
that he is from Bayan Baru and is,
therefore, familiar with the area.
He said it is easier to sell properties
for instance in Bayan Baru as he can
sell a higher number of properties at
a faster rate, compared with selling
a lower number of properties with a
higher-priced per sq. ft. at a slower
pace in areas such as Tanjung Bungah
or Batu Ferringhi.
Going forward, Ooi said reclamation
is necessary due to the scarcity of land
on Penang island.“In order to create
a major land bank, reclamation of
land has been and is being conducted
along the eastern foreshore of
Penang Island. As such, waterfront
developments have been established
and the trend will continue with more
ongoing reclamation.
Ideal Property Group is involved in
investment, property development
and business process outsourcing. Its
investment portfolio includes hotels,
serviced apartments, commercial
shoplots, development land, palm
oil estates and office lots while its
property development division is
involved in the building of residential,
“Moving away from
the mainstream
affordable tag
that comes with
negative stigma,
the surroundings
have been carefully
planned to include
schools, markets and
other facilities for
homeowners to live,
work and play”.
Forest Ville is built amidst a green enclave of lush greenery,
bringing a perfect balance between body and soul

4. 17SmartInvestor | 06 . 2016 |
commercial, light industrial and office
suites.
In 2014, Dato’Alex acquired majority
stakes in United Bintang Bhd which
has since been renamed to Ideal
United Bintang Bhd (IUBB). With this
acquisition, the group is now able to
tap into the capital market and further
extend their presence in the property
development industry.
Key Player in Penang’s
Economic Transformation
Far from just a diversified real estate
player, Ideal Property Group under
the stewardship of Ooi is transforming
itself into a key partner in the future
development and growth of the state
that will mainly be concentrated in the
company’s stronghold in Southwest
district of the island.
Ooi is optimistic about Penang’s long-
term economic potentials, particularly
with the RM27 billion Penang Transport
Master Plan or PTMP that will be
the catalyst to transform the entire
economic landscape of the state.
To recap, Ideal is a partner in SRS
Consortium, a joint venture that was
appointed as project delivery partner
(PDP) for the
massive South
Reclamation
Scheme (SRS)and
PTMP in 2015. The
major shareholder
of the Consortium
is Gamuda Bhd with
60% while Ideal
and Loy Phoy Yen
Holdings Sdn Bhd, a
privately held entity
believed to be
related to the Boon
Siew Group hold a
20% stake each.
Land reclamation,
identified as a land
swap model to
finance the PTMP is expected to take
off in 2018 once federal and state
authorities give the final approvals for
the project component to go ahead.
The proposed PTMP would feature
a light rail transit (LRT) line from
Komtar to Bayan Lepas, a monorail
line from Komtar to Air Itam and
Tanjung Bungah, e-buses across the
North Channel, bus rapid transits on
the mainland, and a 20 km Pan Island
Link Highway connecting Tanjung
Bungah to the Penang International
Airport and the LCE with tunnels
cutting through the hills.
For a start, two islands, measuring
1,300 acres and 2,100 acres, would
be reclaimed at costs of RM7 billion
and RM8 billion respectively as part
of the state government’s land swap
deal with SRS Consortium. An 800-
acre island next to the two islands
has also been identified for further
reclamation in future.
As part of the plan, around 1,000
acres (404.69ha) of land on first
two man-made isles to the south
of Penang under the PTMP have
been earmarked for industrial
development, providing the much
needed land for a long-term
expansion for Penang’s crucial
electronic and high tech industries.
Going forward, Ooi said Ideal will
expand into construction, and will
soon have a listed entity to undertake
many big construction projects that
Ideal has proposed and are in the
pipeline. With the PTPM, if approved,
setting in motion will be an exciting
new chapter in Penang’s development
story for the next 25 years.
One Imperial @ Imperial Park is an award winning
development in Asia Pacific Property Awards 2016
Summerskye Residences @ Ideal Vision Park promotes a
low-carbon lifestyle in an urban setting

5. COVER STORY
18 | SmartInvestor | 06 . 2016
H
olding on the philosophy
that one should be cash rich
rather than asset rich, Ideal
Property Group’s focus on delivering
much sought after high quality
yet affordable condominiums and
serviced apartments has proven to be
a winning strategy.
By receiving encouraging response
to almost all its previous launches
and ongoing projects, Ideal has the
much needed cash to leverage on
for acquisitions, project launches and
be ready for the impeding changes
to the property industry such as the
implementation of the build and sell
concept.
Penang, like most other land-scarce
states or territories like Hong Kong and
Singapore, relies much on high rises
to house a majority of its population.
This strategy also allows the island to
meet the demand of people moving
to the state for job opportunities and
provides the population needed to
support its long-term economic and
social well-being.
Ideal Property Group, with Ooi at
the helm, is the “king” on the island as
far as high rise residential properties
are concerned, with plans to supply up
to 70% of the total units that will be in
market for the coming years.
In an interview with Smart Investor
at a hotel in Kuala Lumpur, Ooi shares
his views on the Penang real estate
outlook, the company’s involvement
in the state’s ambitious plans and
why Ideal is comfortable with just
concentrating its focus and long-term
plans on the Island, in particular the
southwest district as well as what
his visions and hopes are for Ideal
Property Group.
Smart Investor (SI): Given the
general slowdown of the overall
property market, what is your
take on issues specific to Penang
market conditions such as the
demand and supply factor, how
developers like Ideal Property
navigate the mismatch in buyers’
expectations, rising cost of business
and high civil consciousness among
Penang’s vocal and active NGOs
that could sometimes hinder or
delay infrastructure and real estate
related developments in the state?
Alex Ooi (AO): During the slowdown
of economic market, the company’s
strategies include building homes
that meet the demand of the general
market such as selling value added
homes at affordable pricing in a good
Raising UpWith High Rise
Carving out a niche in the real estate sector is no easy feat.
Dato’Alex Ooi proves to be the visionary and ideal thinker
that can take a mid-size developer into a dominant position
in a crucial segment of Penang’s real estate.
“We believe in the
quality of our houses
and we want our
buyers to know that the
quality is assured when
they buy a property
from Ideal. We have
also rolled out our
customer relationship
management
programme and I
personally head it”.

6. 19SmartInvestor | 06 . 2016 |
location. In the State of Penang,
where land is scarce and property
prices are escalating, quality homes
with affordable prices are always
a welcoming statement to our
purchasers. Over the years, repeat
buyers and high take-up rate of our
projects are evidence that the Group
had been delivering suitable products
to meet the market needs.
Economies of scale and good take-
up rates are some factors that have
greatly alleviated the impact of rising
cost of business.
Penang’s NGOs by and large
have noble objectives to provide
positive checks and balances to the
development of Penang Island. We
at Ideal appreciate any constructive
feedbacks and take effective measures
to address such issues wherever they
arise.
SI: What are the key projects that
will propel Ideal Property into the
big league of real estate developers
in the country? What are the factors
that will continue to drive demand
for property in the state and can
Ideal’s ambitions and aspiration
be met just by concentrating in
Penang?
AO: Currently, Ideal is involved in
some major projects namely The
Penang Transportation Master Plan
in Penang, embarking on the Queens
Waterfront Project in the vicinity of
Queensbay; and a mixed integrated
development which includes a
shopping mall and hotel located in
Bukit Ayun, near Penang International
Airport.
Each of these project has their
own distinctive features that would
contribute positively to make Penang
a more attractive place to work and
stay. Moreover, each of these projects
would also boost Ideal’s portfolio,
featuring different types of property
development projects apart from
affordable condo projects it has always
been involved in, in the past years.
These projects which are all located
in Penang would be sufficient to keep
the Group busy for the next few years.
With these upcoming developments
under our belt, our focus and
concentration in the meantime would
definitely be in Penang.
SI: How has the recent acquisition
of stake in United Bintang Bhd
changed the group in terms of
synergy and diversification? What
are the values that this listed entity
could bring to the group?
AO: The Group had recently
completed injecting the RM925
million I-Santorini into IDEALUBB.
IDEALUBB had acquired I-Platinum
S/B in 2015 which is a property
development company. As such,
IDEALUBB foray into property
development.
In all Ideal’s past projects, it
has always been a practice for the
Group to utilize its own funds and to
minimize on its fund borrowing. A
listed vehicle would enable us to tap
into the capital market, which would
surely be to the advantage of the
group in the very near future. Such
move would also be consistent with
the management’s existing funding
approach.
SI: With many traditional industries
from automotive to banking now
facing competitions as well as
opportunities from disruptive
technologies, how do you see the
trend for real estates and property
companies going forward?
AO: In a sluggish economy, it is
common for players in the industries
to compete amongst themselves for
the purpose of survival. Although such
competition will have some impact on
the general economy, the effect will
not be harsh on the Penang property
industry.
Over the past few years, the
employment market in Penang has
been performing at a healthy level.
Working group hovers around 70%
of the total population in Penang.
Healthy employment rate will result
in healthy take-up rates of the
property units. However, the general
economic conditions may cause
many investors to remain cautious,
hence slowing down growth.
Going forward, we are still
positive on the outlook of Penang
property scene as the state is still
an attractive place to work and stay.
Employment opportunities are still
aplenty in the next few years in
view of Penang’s reputation as a hot
tourism destination as well as the
Penang Transportation Master Plan
projects. These factors should keep
Penang at a stable level if not cause it
to experience positive growth in the
coming years.
SI: What can we expect to see
from Ideal Property in another
five years? In other words, what
are your visions and plans for the
group and how do you integrate
future trends such as technologies
and digital platforms to modernise
and put the Group in the forefront
of the real estate industry?
AO: Ideal hopes to continue to
deliver quality products to our
purchasers to safeguard the interest
of our shareholders and to continue
to contribute positively to the welfare
of the society and our employees. The
Group currently has approximately
10,000 units within the existing
and upcoming projects. With the
continuous support from our
purchasers, shareholders, our team
of talents and business associates, we
are certain that the Group will scale
to a greater height within the next 5
years. We also believe that we will be
able to maintain our position being
in the forefront in developing for our
niche market.