Glomac sitting on projects worth RM7b in GDV

KUALA LUMPUR: Glomac Bhd, after posting a record net profit of RM101.5 million for the financial year ended April 30, 2013 (FY13), is expected to maintain its momentum in the next few years based on the availability of projects worth RM7 billion in gross development value (GDV) within greater Kuala Lumpur.

Group executive chairman Tan Sri F D Mansor said the property development company is targeting new launches worth RM1.3 billion in FY14, primarily focusing on townships and niche landed residential projects.

"Other than Lakeside Residences (in Puchong), the new township in Cyberjaya/Putrajaya with a total GDV of RM1.2 billion is earmarked for launch in the first quarter of 2014.

"Continuing the success of Bandar Saujana Utama (in Sungei Buloh), the company is undertaking a 200-acre (80.8ha) extension to the existing township which is expected to generate a potential GDV of RM800 million,” he said in a statement yesterday.

For FY13, the group's milestone of achieving a net profit of over RM100 million was on the back of RM665.9 million revenue.

"The stronger performance was attributed to construction progress in on-going projects, such as Glomac Damansara, Reflection Residences and township developments in Bandar Saujana Utama and Saujana Rawang.

"The company has successfully launched key projects which translated into record new sales of RM802 million for FY13. This has resulted in the group's unbilled sales reaching an all-time high of RM888 million as at end of April 2013,” Mansor said.

Glomac's Lakeside Residences in Puchong, the company's new RM2.5 billion flagship development, received a strong response in FY13. Phase 2 (Sonata) and Phase 3 (Symphony), comprising a total of 244 double-storey terrace houses, were sold out within the first day of their respective launches.

The company said Phase 4 (Avory), comprising 75 double-storey terrace houses with a GDV of RM60 million, was launched at the end of March this year and has been sold out.

"Glomac expects another exciting year ahead, with growth to be underpinned by its high unbilled sales and planned multiple launches from its strategic landbank,” Mansor said.

The company is proposing a final gross dividend of 3.5s en per share less 25% tax for FY13. This will bring its total dividend per share for the year to 6.5 sen, higher than the 5.5 sen paid in the previous financial year.

This article first appeared in The Edge Financial Daily, on June 26, 2013.

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