Glomac gears up for more new launches

KUALA LUMPUR (Sept 21): After holding back some of its project launches for about a year, Glomac Bhd is now targeting to launch properties worth some RM1 billion in total gross development value (GDV) before its current financial year end April 30, 2017 (FY2017).

Glomac group managing director Datuk Seri Fateh Iskandar Mohamed Mansor (pictured) said some RM200 million GDV worth of projects have been launched in the first quarter of FY2017.

Remaining projects set to be launched in FY2017 are at Lakeside Residences (terraced houses and shop), Saujana KLIA (semi-dees), Saujana Utama 4 & 5 (terraced houses), Saujana Rawang (terraced houses), Sri Saujana in Johor (landed homes and shop offices), Saujana Jaya in Kulai (terraced houses and affordable homes) and Plaza Kelana Jaya (serviced apartments and shop offices).

"Among the total project launches, some RM700 million worth of properties are mostly landed homes that fall within the affordable price range. Our newly launched Saujana KLIA has achieved 80% take-up and some 90% take-up for Lakeside Residences. We are confident in our landed properties. For high-rise projects, it is very challenging, unless it is in a very strategic location and have the right pricing," Fateh Iskandar told reporters after Glomac’s annual general meeting today.

He said Glomac is well placed to capitalise on the sustainable demand in landed properties with its RM7 billion pipeline of potential projects that are predominantly in landed residential and affordable township developments.

Speaking on the shortage of affordable housing, Fateh Iskandar believes the volume of supply is sufficient, but there is a mismatch in supply and demand in certain areas.

On a recent proposal to allow eligible developers to provide end financing to homebuyers, he said Glomac is still waiting for more information on the mechanics of the proposal.

"Same like other developers, Glomac is awaiting the Cabinet’s decision and the mechanism to be announced. Once the mechanism is out, we will study if it is reasonable and workable. We will try to help those in need, especially first-time homebuyers," he said.

Moving forward, he believes FY2017 will continue to be challenging for the developer. “But things could be different if there is good news coming from Budget 2017,” he added.

"I hope for three things. First, improved margin of end financing, especially for first-time homebuyers; second, lower compliance cost and third, lower contribution cost. To sum up, make the business environment easier so that developers could bring down house prices," he said.

Glomac also announced its first quarter result ended July 31, 2016. The group revenue surged 104.4% to RM251.4 million from RM123.0 million in the corresponding quarter of FY2016, while net profit jumped 306.0% to RM85.5 million, surpassing the full financial year 2016 net profit1 of RM80.9 million.

According to a statement by the company, the performance in the quarter under review was attributed to contribution from the disposal of land for RM145.6 million, as well as development progress from its key ongoing projects, namely Saujana KLIA, Lakeside Residences, Glomac Centro and Reflection Residences. The disposal of the aforementioned 16.9ha of freehold development land in Cheras was completed in July 2016.

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