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Gamuda eyes RM5b property sales in next two years

SHAH ALAM: Gamuda Bhd is targeting RM5 billion in property sales over the next two years driven by two projects namely Gamuda City and Celadon City, both in Vietnam.

"We are expecting RM2 billion in sales from local projects and RM3 billion from the two projects in Vietnam.

"For us, this is a giant leap and we are busy trying to make sure we achieve the RM5 billion sales," group managing director Datuk Lin Yun Ling told reporters after the company's annual general meeting here on Thursday, Dec 9.

He said Gamuda expected RM1 billion in sales from its property division in the financial year ending July 31, 2011.

Currently, Gamuda's unbilled sales stood at RM800 million.

Gamuda's property sales rose 59 per cent to RM820 million in the current financial year, from a year ago, while the division contributed 24 per cent to the overall group pre-tax profit.

Lin said Vietnamese developments would be the key drivers of revenue and earnings growth with both Gamuda City and Celadon City expected to be launched early next year.

Gamuda City, a 200-hectare mixed township development has a gross development value (GDV) of US$9 billion (RM28.26 billion) over nine years.

Celadon City is Gamuda's second development in Vietnam with affordable residential units and was expected to achieve a GDV of RM5.5 billion over the next nine years.

Gamuda's property division would sustain strong growth for several years with total GDV of developments amounting to RM23 billion.

Among its property developments include Kota Kemuning, Bandar Botanic, Valencia, Horizon Hills, Jade Hills and Madge Mansions.

On whether the merger trend in the property sector would affect Gamuda's sales, Lin said it would not have any impact as Gamuda was pursuing a different strategy.

"Our priority now is to sell down our landbank through innovative development," he added.

On the proposed RM36 billion mass rapid transit (MRT) system for the Klang Valley, Lin said MMC Corp may have a possible role as Gamuda's project delivery partner.

The Cabinet was yet to approve the project and Gamuda was awaiting government approval, Lin said, adding that the group was not involved in the decision making regarding the alignment of railway lines and location of stations.

"Everything has to be competitive and transparent. Everything will be tendered. If we are allowed to tender for the underground part of the project, we would be more than happy."

On its 40% associate company, Syarikat Pengeluar Air Sungai Selangor Sdn Bhd's offer to buy out the water assets in Selangor, Lin said: "I think the state and Federal governments are trying to resolve it... so let them handle it." — Bernama
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