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Saturday, August 22, 2009

Selangor Dredging: Up to RM500m launches in pipeline

PROPERTY developer Selangor Dredging Bhd expects to launch several developments totalling RM400 million to RM500 million in gross development value by the end of its fiscal year ending March 31 2010.

The developments include two remaining blocks of its Five Stones condominium development in SS2 in Petaling Jaya and a 33-storey high-rise condominium in Singapore.

"To actively manage the soft property market, we have rescheduled some of our launches such as the Five Stones development," its managing director Teh Lip Kim told reporters after the group's annual general meeting in Kuala Lumpur yesterday.

It has brought forward the launch date for the two remaining blocks of the Five Stones development from the middle of next year to the first quarter.
Five Stones comprises five blocks, with three blocks launched last week. It has already sold 70 per cent of the 185 units.

"We are also resizing some of our units in other property projects. Some of our layouts were relatively big and we have decided to decrease the size," she added.

For instance, the 33-storey condominium project located near Newton Circus in Singapore has been re-planned to house smaller units. This development, to be launched either by year-end or the first quarter of next year, will now have 110 units, instead of 66 units.

Selangor Dredging's unbilled sales from recent launches, including Five Stones and another Singaporean development, Jia, stand at RM235 million.

The group saw its fiscal first-quarter earnings dip because of lower sales recorded by the hotel operation due to the Influenza A (H1N1) virus. Selangor Dredging owns and manages Hotel Maya in Kuala Lumpur.

Net profit for the three months to June 30 2009 dropped 62 per cent to RM2.7 million, while its revenue declined 24 per cent to RM48.7 million.

"The last quarter was bad because all our overseas guests were mainly from Europe, Australia and the US, and they basically stopped travelling. In addition, MNCs (multinational corporations) froze their corporate travels, so we had many cancellations," said Teh.

However, there are signs of improvement for the hotel operations in the present quarter, he said.

By Business Times (by Jeeva Arulampalam)

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