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Tuesday, July 29, 2008

Developer General Corp on track to maintain growth

PROPERTY developer General Corp Bhd expects to maintain the growth it enjoyed last year, bolstered by its developments in Singapore.

The company has two contracts in Singapore worth a combined S$492 million (RM1.17 billion).

The group registered net profit of RM41.3 million for the financial year ended January 31 2008, a nine per cent jump from the RM37.8 million it made the year before.

General Corp's developments in Singapore contributed 46 per cent to revenue last year.

The group recorded RM337.6 million in revenue last year.

The group's executive director Datuk Marco Low Peng Kiat said the company will not be aggressive in executing its growth plans this year, preferring to focus on completing its existing projects.

LOW: We are looking for more of pockets of land for niche development

He said the stance is in light of the current political and economic uncertainties in the country.

This does not stop the company from growing its land bank though, as it looks to grow its number of properties in the Klang Valley area.

"We are not looking for big acquisitions, more of pockets of land for niche development," Low said.

On the impact of rising raw material prices like steel and cement, he said the group has recorded a 10 per cent increase in cost due to the phenomenon.

Low said he expects a softening in demand for the property market this year especially with the uncertainty in the political scenario.

"We are fortunate that we are involved in niche developments rather than large scale developments like townships," executive director Michael Cheong Chee Leng said.

He said larger scale projects would be the ones most hit by the price increases.

By New Straits Times (by Presenna Nambiar)

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