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Friday, August 29, 2008

Glomac reviewing property launches

KUALA LUMPUR: Glomac Bhd is reviewing its property launches given the current challenging environment of inflationary pressures and the slowdown in demand for medium-range residential properties.

Managing director Datuk F.D. Iskandar said the company was relooking at some of its medium-range residential properties.

Glomac Berhad group executive chairman Tan Sri F.D Mansor and group managing director Datuk FD Iskandar at the press conference on Thursday.

“We find the margins have been squeezed,” he said after the company AGM yesterday.

However, he said, the company would still continue with the launch of its high-end niche projects as the takeup rate of such projects had not been as badly affected by the current situation in the market.

“With such volatility in construction material prices, it has not been an easy operating environment for us.

“Nevertheless, we are pleased to have achieved a favourable set of results for the year and, more importantly, our recent launches have been well received,” he said.

While the group enjoyed brisk sales of its township developments, Bandar Saujana Utama and Saujana Rawang, its commercial project in Sri Hartamas, Glomac Galleria, and the initial phases of its gated development in Bandar Sri Bangi were fully sold out within months of being launched, he said.

For the financial year ended April 30 (FY08), including the en bloc sale of Glomac Tower, the group achieved record sales of RM916mil, and unbilled sales stood at a high of RM667mil.

Iskandar said the RM650mil mixed development, Glomac Damansara, would likely be launched in the next quarter.

“The first phase will comprise shop/offices and an office block.

“We are also very excited about the new land bank we secured. We believe this latest phase of Plaza Kelana Jaya, where Restaurant Kelana Seafood Centre was formerly sited, offers strong potential for another commercial development. We expect to launch this project in 2009,” he said.

At present, the company has about 1,000 acres of land bank, with a gross development value of about RM3.5bil.

The company yesterday announced its latest unaudited revenue of RM71.6mil and pre-tax profit of RM4.9mil for the last quarter ended April 30.

For FY08, the group registered 10.4% growth in revenue to RM323.9mil, driven by contributions from Suria Stoner and Plaza Glomac.

It reported pre-tax profit of RM50.2mil and net profit of RM35.1mil, an increase of 9% from FY07.

On plans for further joint ventures, Iskandar said the group had been invited by the Al Batha Group of the United Arab Emirates to diversify into the Middle East.

By The Star

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