Selangor Dredging upbeat on this year's outlook

KUALA LUMPUR: Selangor Dredging Bhd is upbeat on its outlook for the year with RM650 million unbuilt sales and property launches worth RM1 billion in gross development value (GDV) in the pipeline.

"We have grown quite substantially with RM650 million of unbuilt sales as compared to this time last year when we only had RM150 million of unbuilt
sales," Chairman Eddy Chieng said in a press conference on Thursday, Aug 26.

He said with the company's positive five years' track record, it would continue to capitalise on its success with more property launches in the future and current developments in Malaysia and Singapore.

Moving forward, Managing Director Teh Lip Kim said the company would launch projects in Ampang in November and 104 units of apartments in Singapore by the year's end with a total GDV of RM350 million.

"We still have a stop work order for our Damansara 21 hill slope development and is waiting to hear from the authorities," she said, adding that the company had not been informed of any progress on the site.

Currently, the company has three ongoing developments in the country and two in Singapore with a GDV of RM1.4 billion in total.

On average, 80% of its five ongoing projects were sold within a year, and Five Stones in particular is 99% sold.

Besides the five ongoing projects, the company has a strategic land in Singapore, a 5.6-acre land in Batu Feringghi and a commercial land next to its Five Stones project.

"While we are embarking on the property development business, we are anchored down by very good core assets with four office tower blocks in Wisma Selangor Dredging that is 95% fully leased, generating steady cashflow for the company," said Chieng.

He said the company would focus more on property development with an asset ratio of 70% in property development and 30% in property investment.

Returns contributed by property development stand at 80 per cent while less than 20% from property investment.

"We can sell our products at a premium due to our concepts as we do not price ourself as a commodity but a niche property developer that offers buyers higher value proposition.

"We have been able to leverage on our brand and are selective on lands which are strategically located with projects well thought out and functional and suit the current lifestyles of buyers," he said.

The company sits on top a RM19 million cash pile, and is not looking at any fund raising exercises. -- Bernama