KUALA LUMPUR: Glomac Bhd, which already has a presence in property hot spots in the Klang Valley and Johor, is now eyeing Penang as its next destination. The property developer is also not discounting the possibility of venturing into more countries across the globe.
Group managing director and CEO Datuk Fateh Iskandar Mohamed Mansor said Glomac is venturing out of its comfort zone in the Klang Valley, and aims to include more projects in Johor and Penang under its long-term plan.
“Our developments are mainly focused in greater Kuala Lumpur. We are actively looking for landbanks in Malaysia but mainly in greater KL. However, we are always open if any good opportunity comes up outside of KL, especially in Iskandar Malaysia, Johor, and Penang, and even overseas,” Fateh Iskandar wrote in an email reply to The Edge Financial Daily.
He was responding to a question about Glomac’s geographical diversification and whether the company is keen on expanding its presence in Sabah and Sarawak.
Fateh Iskandar, however, declined to elaborate on Glomac’s plans for Sabah and Sarawak.
Abroad, Glomac has ventured into Australia and Thailand. It undertook its overseas foray in 2006 when it boughtan office building in Melbourne, Australia for A$30.5 million (RM99 million).
In 2007, Glomac took a 49% stake in Thailand-based warehousing and logistics entity, WHA Glomac Alliance Co Ltd. However, it sold the stake in September 2011 for RM30.92 million.
It was also reported in 2007 that Glomac had intended to undertake an estimated RM800 million township development in Pune, India under a joint-venture with India-based developer Vescon but there have no recent updates on this venture.
Glomac’s geographical diversification plans come at a time when the company is raking in higher new property sales. Fateh Iskandar said the company expects to register at least RM750 million worth of sales in the current financial year ending April 30, 2013 (FY13), 13% higher than FY12’s RM663 million.
In the first nine-months of FY13, sales amounted to RM519 million while unbilled sales as at January 31, 2013 stood at RM827 million.
“For full-year (FY13) target, we are on track to exceed RM750 million,” Fateh Iskandar said.
TA Securities, in its note on Glomac, expects the company to secure new sales of RM760 million for FY13, RM890 million for FY14 and RM953 million for FY15.
|Fateh Iskandar: We are|
actively looking for landbanks
in Malaysia but mainly in
The research house said the increase in sales projections reflects stronger than expected sales from Glomac’s existing township projects. TA Securities expects a higher potential GDV of RM2.5 billion for the group’s new township development in Puchong and RM1.2 billion from its project in Dengkil.
Fateh Iskandar noted that the company continued to chalk up consistent sales for townships in Sungei Buloh and Rawang, while new launches in Lakeside Residences in Puchong have also been well received.
“Other developments such as Reflection Residences (in Mutiara Damansara) and Glomac Centro (Bandar Utama) also contributed (to overall sales),” he added.
Glomac’s cumulative net profit for the first nine-months of FY13 climbed 11% to RM70.29 million from RM63.53 million a year earlier. Revenue was higher by 9% to RM445.32 million against RM407.95 million previously. Glomac shares closed at 98.5 sen last Friday.
Maybank Investment Bank has raised its target price for Glomac to RM1.16 from RM1 previously. This comes with a “buy” call. TA Securities has also increased its target price for Glomac to RM1.17 from 98 sen.
This article first appeared in The Edge Financial Daily, on April 1, 2013.
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