Thursday, October 1, 2009

Glomac to launch new phases in ongoing projects

Property developer GLOMAC BHD plans to launch new phases with a targeted gross development value (GDV) of RM500 million in five of its ongoing projects in its current financial year ending April 30, 2010.

The new phases are a mix of residential and commercial projects, including a low-cost housing project in a joint venture with Perbadanan Kemajuan Negeri Selangor (PKNS), said Glomac managing director and chief executive officer Datuk FD Iskandar.

The projects that would launch a new phase are Glomac Damansara, Saujana Utama, Bandar Saujana Utama, Seri Bangi and Glomac Cyberjaya.

“The Seri Bangi low-cost residential housing project is a joint venture between us and PKNS,” Iskandar said. He said the group aimed to achieve RM500 million in sales this year from its 11 ongoing projects, which have a total GDV of RM3 billion.

Iskandar said Glomac was seeing an improvement in consumer sentiment in line with the gradual recovery seen in the economy.

“We are not out of the woods per se, and the economy needs to recover first before the effect can be felt in the different sectors,” he said, adding he expected a full economic recovery by next year.

Glomac posted a 13.5% rise in net profit to RM8.34 million in its first quarter ended July 31, 2009 despite a 40.9% fall in revenue to RM58.99 million. The higher profit was due mainly to the stronger contributions from Glomac Tower and recognition of fair value gain for Block B Glomac Business Centre.

On the forthcoming 10th Malaysia Plan, FD Iskandar hoped that property taxes would be reduced to increase the purchasing power of consumers. He also said state governments should take up low-cost housing initiatives to relieve private companies of the additional burden.

In addition, he said the government should do more more to promote the Malaysian property market to attract foreign interest, he said.

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