SIME PROPERTY AIMS FOR RM2.3B SALES

Developer expects to achieve satisfactory results for financial year 2019

SIME Darby Property Bhd (Sime Property) has targeted RM2.3 billion sales this year, after surpassing its sales target for the six months ended December 31 last year.

In a statement yesterday, Sime Property said the RM1.34 billion sales for the six months were onethird higher than the company’s initial target of RM1 billion sales.

“Having addressed our legacy assets and products, we expect an immediate return to profitability operationally as our performance has been positive. Our launches during the period were well-received and we expect this to continue into the first half,” said chairman Tan Sri Dr Zeti Akhtar Aziz.

Sime Property said demand for landed houses in Serenia City, Selangor, continued to be strong, with 99 per cent of Serenia Adiva sold in October.

Group managing director Amrin Awaluddin said the prolonged softness of the property market remained a major challenge but the group was hopeful of a silver lining with concerted efforts from the public and private sectors.

“We will also continuously review plans for the year to ensure that our pricing strategy and future launches are responsive to market demand,” he said.

Sime Property expects to achieve satisfactory results for the financial year 2019, taking into account the sluggish property market.

It said apart from the continuing efforts to reduce inventories, the company would continue to launch properties within the affordableto medium-price range of RM500,000 to RM800,000 and had targeted unbilled sales of RM2 billion for the year.

“In addition to our bread-andbutter activities, we are continuing with the disposal of noncore assets to put our capital to better use,” said Amrin.

Sime Property posted a net loss of RM318.7 million in the six months ended December 31 last year against a net profit of RM559.77 million in the same period in 2017.

It said while the previous year’s result included gains on disposal of a subsidiary and an associate totalling RM317.8 million, the current period’s result was impacted by high impairment of inventories, negative contribution from the Battersea Power Station project in the United Kingdom and a higher tax provision.

Revenue in the same period rose 7.9 per cent year-on-year to RM1.27 billion from RM1.18 billion previously.

In a separate announcement, Sime Property announced the appointment of Betty Lau Sui Hing as its new chief financial officer, effective April 1. She will succeed Datuk Tong Poh Keow, 64, who will be retiring on March 31.