Crescendo's strategy to counter economic slowdown

PETALING JAYA: The economic slowdown has Crescendo Corporation Berhad taking precautions by disposing of near completed stock rather than launch new projects, said chairman and managing director Gooi Seong Lim.

As of June 30, 2009, the group recorded RM65 million in sales from brought-forward and new sales.

In its Nusa Cemerlang Industrial Park (NCIP) in Johor's Bandar Nusajaya, Gooi said about 45 industrial units were nearing completion and the plan was to sell them for an estimated profit of RM20 million by this year or early next year.

The NCIP is a freehold industrial area which would have 383 units. So far, about 100 units have been built with around 60 sold. The gross development value (GDV) for the industrial park is above RM70 million.

Crescendo hopes to launch its flagship project Bandar Cemerlang also in Johor in three years. It is a 1,400 mixed residential development with a GDV of RM2.5 billion.

"The residential market in Johor is not very active currently due to oversupply," Gooi told reporters after the AGM on Ju;y 24.

However, he expected the situation would improve in the next couple of years once the Integrated Resorts (IR) project in Singapore is completed at end-2009 or early 2010. The developer could then target Malaysians working at the resorts for its houses.

With this in mind, Gooi said to improve accessibility to the development, the developer was investing RM10 million to build an interchange to link up to a new highway built by the government.