Sunway recorded RM500 million sales mainly from its ongoing projects in the Klang Valley such as Sunway Velocity and Sunway South Quay in the first half of financial year 2015
The order book replenishment has been encouraging with a total of RM932.9 million new orders secured year to date.
The proposed acquisitions will be funded via a combination of cash and new IOI Property Group shares at an issue price of RM2.21 per share.
Its property development division will play a prominent role in its future plans. Undoubtedly, contributions from this segment could potentially fill the gap left by the loss of its passport project.
Growth in the property segment was largely driven by strong sales from The Garden Residences in Taman Mutiara, Skudai, Johor in addition to stable demand for other developments in Pasir Gudang, Kulai, Senai and Melaka.
This move has caught us by surprise. We believe the decision was made to prevent excessive supply of serviced apartment, Soho and Sovo amid the gloomy outlook plaguing the sector. According to statistics compiled by the National Property Information Centre, Selangor had 4,302 units of serviced apartment yet to be sold in the fourth quarter of 2015 (4Q15), with an incoming supply of 33,647 units. As for Soho, Selangor had 2,731 units unsold with an incoming supply of 9,623 units in 4Q15. Planned supply (projects with building plan approval but yet to be constructed) for serviced apartment and Soho stood at 7,692 units and 3,446 units respectively.