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Saturday, August 15, 2009

Sunrise in talks to buy more land

The property developer is looking at three or four of land in the Klang Valley and some may be purchased before the year is out

Sunrise Bhd, a property developer with extensive projects in Kuala Lumpur's upmarket Mont'Kiara area, is actively looking to buy three or four parcels of land in the Klang Valley, executive chairman Tong Kooi Ong said.

"We are currently actively looking at three or four (parcels) ... but these are all still pending negotiations," he told reporters after an analyst briefing late yesterday.

Some may be purchased before the year is out, he said, adding that joint ventures will also appeal to the group as they do not involve a lot of capital.

"We have limited capital and don't really want to keep going into debt," he remarked.
Sunrise has a landbank of 348ha, including 175ha of agriculture land. Its landbank in Mont Kiara alone is 33ha.

Tong said the Malaysian property market appeared to be stronger than a year ago and it was likely that developers would be rushing to launch projects once again.

"We do think it is quite likely that the property momentum will stay. There shouldn't be any shocks," he said.

Sunrise has a pipeline of projects ready to be launched depending on market conditions, Tong added, declining to be specific.

The group reported fourth quarter net profit of RM43.1 million yesterday, slightly lower than the RM44.9 million it made a year earlier.

This brought its net profit for the full year ended June 30 2009 to RM156.2 million, a slight drop from RM159.9 million before. Revenue was up 17 per cent to RM803.9 million.

The group had unbilled sales of RM971 million as at June 30, which will underpin its earnings for the next two years to 2011, Tong said.

These would further be boosted by property sales of RM39.3 million last month and another RM157.1 million pending the formalisation of sale and purchase agreements, he added.

Most of the unbilled sales - essentially sales that have yet to be booked into its accounts - were from higher-margin products.

In the last fiscal year, Sunrise chalked up new property sales of RM344.1 million.

Its introduction of innovative financing packages for two of its projects, 11 Mont'Kiara and Mont'Kiara Residence, have been well received and helped add up RM264.2 million in bookings between March and July.

By Business Times (by Adeline Paul Raj)

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