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Thursday, May 28, 2009

Bertam Alliance to launch RM310m high-end projects

PROPERTY developer Bertam Alliance Bhd will launch three high-end projects worth a combined RM310 million in Selangor and Langkawi to ride out the economic downturn and remain profitable.

The company hopes to maintain its 2008 earnings via locked in sales and income from the projects, its executive chairman Ng Sing Hwa said.

For the year ended December 2008, Bertam made a net profit of RM5.5 million, up 28 per cent from 2007, on revenue of RM45.2 million.

Bertam, (formerly, UH Dove Holdings Bhd), is launching up to 30 bungalow lots in Langkawi worth over RM20 million in June, Ng said.

In July, it will launch Grand View, a gated and guarded community featuring 66 exclusive bungalows worth RM140 million (RM1.8 million to RM3 million each) in USJ1, Subang Jaya.

By September, Bertam will launch 72 bungalows in Kota Damansara, worth RM150 million, or RM1.8 million to RM2.2 million each.

Ng told Business Times after the company's shareholders meeting in Petaling Jaya yesterday that it is optimistic of selling the stocks within a year.

"Our properties are in established areas. So long as you don't overprice, there will be buyers. As a developer, I am quite happy with 25 per cent to 30 per cent profit margins," he said, adding that Bertam will emphasise on building houses in small numbers to remain cash flow positive.

It will also buy pockets of land from developers in choice locations instead of more than 40ha.

"Landbank kills if you are not careful and are over geared. If you buy land of more than 200ha, you will be cashflow negative, unless you have been able to develop it by more than 50 per cent. We won't toy with that risk," Ng said.

Ng added that Bertam will not lock-in a project that will last more than three years.

"Housing is an industry, not a real estate development. We buy land and keep on moving. We do not speculate or keep stocks. We have the right products to sell. We emphasis on design and do not overprice," Ng said.

By Business Times (by Sharen Kaur)

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