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Friday, April 24, 2009

Selangor Prop to clear residential stocks

SELANGOR Properties Bhd (SPB) wants to clear the residential property stocks in its current projects before launching new development phases as sales have plunged almost 50 per cent.

"People are more cautious. Average sales used to be 20 to 30 units a month but now it has been reduced by 50 per cent despite attractive interest rates," financial controller Lee Boon Kian said after SPB's annual general meeting in Kuala Lumpur today.

SPB has two ongoing projects at Bukit Permata in Gombak and Selayang Mulia, with both developments comprising about 40 hectares each.

The Bukit Permata development is 75 per cent completed while Selayang Mulia is half completed.

Lee said out of the residential 560 units in Bukit Permata, 270 units were unsold.

"There are plans to launch the next phase of development in Bukit Permata and Selayang Mulia and another project in Ulu Langat but these are all in the planning stage," he said.

According to Lee, the new phases and project may be launched late this year or early 2010.

He said the Ulu Langat project will be a mixed property development.

For the financial year ended Oct 31, 2008, the group recorded a net profit and minority interests of RM118.6 million based on a turnover of RM210.6 million.

On the outlook, Lee said: "We can't match that kind of profit (for the current financial year) as part of last year's profit came from foreign exchange gains."

Besides property development, SPB is also involved in the education business.

On talks that the company will be privatised, SPB corporate affairs manager Chong Koon San said there was no such plan.
Asked if SPB planned to acquire more land, Lee said it was looking for such opportunities in the Klang Valley "but prices have not come down that much yet."

By Bernama

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