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Wednesday, May 13, 2009

Faber expects dip in property revenue

Faber Group, which plans three property launches this year, is exploring the possibility of tying up with banks to offer stimulus packages

FABER Group Bhd, a healthcare support services group, expects revenue contribution from its property division to fall this year as the economic slowdown hits housing demand.

It plans three new launches this year, with a total gross development value (GDV) of RM392 million, given the right market conditions.

One of the projects comprises 31 link-villas and three bungalows on 3.4ha in Taman Desa, Kuala Lumpur. It plans to launch the development, with estimated GDV of RM75 million, by the fourth quarter.

The other two are Phase 1A of a joint venture with the Kuala Lumpur City Council (DBKL) in Taman Desa and Phase Four of its Laman Rimbunan development in Kepong, Selangor.
The Phase 1A project consists of 40 semi-detached houses and six bungalows, with a GDV of RM98 million.

Phase Four of the Kepong project features 150 semi-detached houses and three bungalows, with a GDV of RM219 million.

"Both projects are targeted to be launched by the third quarter of this year, subject to market conditions," Faber Group managing director Adnan Mohammad said.

The group is also exploring the possibility of tying up with banks to offer stimulus packages.

Last year, the property division accounted for 23 per cent of the group's revenue, with the rest contributed by its integrated facilities management (IFM) business for hospitals.

"This year, we expect to see a dip in (contribution from) the property division, but it will be compensated by higher IFM activities, especially with our venture into the United Arab Emirates (UAE) and India," Adnan said after the group's annual general meeting in Kuala Lumpur yesterday.

Faber Group is targeting this year's revenue to increase 12-14 per cent from RM668.5 million last year.

Its overseas contribution is expected to double to 10 per cent this year after it clinched two contracts in the UAE worth RM66 million and another IFM project in India, which will contribute RM18 million revenue.

Faber Group has 17.2ha of undeveloped land with a GDV of RM900 million and unbilled sales of RM752 million.

By Business Times (By Zurinna Raja Adam)

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