Glomac to launch RM2b scheme in Puchong

KUALA LUMPUR (May 31): Glomac Bhd will soon launch a RM2 billion property project in Puchong (Glomac Puchong) as the foundation of its RM7.4 billion target in gross development value (GDV) from ongoing projects as well as launches in the pipeline.

Datuk FD Iskandar FD Mansor, group managing director and CEO, told a news conference during Invest Malaysia 2012 on Wednesday that Glomac Puchong, with a potential GDV of RM2 billion, will be the group's single largest project.

The Puchong project's size will surpass the group's present total GDV of RM1.46 billion. Glomac had RM588 million in unbilled sales as at end-January.

Iskandar said the group will continue to seek new landbank within the greater KL area, which still shows strong demand for residential properties. He added that Glomac is keen to expand in overseas markets, especially Thailand and Indonesia. But the changing regulations and present market conditions made Glomac take a more conservative stance, Iskandar said, adding that the group is presently operating in Thailand and Melbourne, Australia.

Glomac is in the process of finalising the acquisition of 81ha of land in Puchong for RM77 million, for the Glomac Puchong project. It is also wrapping up another 81ha in Sungai Buloh for RM44 million.

The Sungai Buloh land is adjacent to the group's Bandar Saujana Utama township, and is expected to generate a GDV of RM800 million.

Iskandar said Glomac presently sits on a net cash of RM33.1 million, although this will be reversed after it completes the purchase of the Puchong and Sungai Buloh land. The group is determined to maintain a gearing level of below 0.5 times.

This story appeared in The Edge Financial Daily on May 31, 2012.