Glomac banks on RM810m new launches to boost sales
KUALA LUMPUR: Glomac Bhd has earmarked new property launches with a gross development value (GDV) of RM810mil for the financial year ending April 30, 2018 (FY18) to drive better sales.
This is compared to the RM290mil worth of properties launched by the group last year.
The new projects to be launched shall comprise 62% landed residential, 25% high-rise residential and 13% commercial units, some of which are in the affordable category.
Speaking at Glomac’s AGM, group managing director and CEO Datuk Seri FD Iskandar said the new launches would begin to roll out from October to November this year, as well as during Chinese New Year.
“You might be surprised but we do have buyers visiting our sales gallery during the festive seasons, which is why the sales gallery is open during Chinese New Year and Hari Raya.
“We see family members residing abroad, who come home to celebrate the festivities, visiting our sales gallery to buy properties,” he said.
He added that Glomac had been rather quiet in the past two years, with new launches amounting to only RM564mil collectively.
“Now with RM810mil worth of property launches, we remain sensitive to what the market wants, and think we have the right products at the right location,” he said.
The projects to be launched include affordable apartments and shops at Lakeside Residences; semi-detached and affordable homes, apartments, and shops at Saujana KLIA; as well as terrace houses at Saujana Utama 5 and Saujana Jaya in Kulai, Johor.
Meanwhile, mixed-use residential development Glomac Centro, which was handed over to its purchasers last year, now has occupancy rate of about 75%. This is on the back of about 80% sales achieved.
Phase 2 of Glomac Centro, Centro V, will have a GDV of an estimated RM240mil and is slated for launch in FY19.
Glomac has a healthy balance sheet with a net gearing ratio of 0.2 times and shareholders’ fund of close to RM600mil, enabling the acceleration of projects and landbank replenishment.
However, it recorded a 97.5% drop in net profit to RM2.1mil in the first quarter ended July 31, 2017 compared with RM85.54mil for the same period a year ago in the absence of a one-off land sale gain seen in the same period a year earlier.
The group is considering buying several parcels of land and continues to be on the lookout for suitable landbank, particularly at locations where its has established its presence, such as within the Greater KL region, KL, Selangor and Johor.
“In the last two to three years, land prices have been increasing but over the past six months or so, prices have stabilised.
“As a property developer, we are always on the lookout for suitable landbank. It can be located anywhere as long as Glomac can make good profits for its shareholders,” said Iskandar.
To date, Glomac has unbilled sales amounting to RM570mil, which will last for the next two years.
The current and future GDV for its total landbank stands at an estimated RM9bil.
Iskandar, who is also president of Real Estate and Housing Developers’ Association, added that there has been a slight improvement in the number of property launches and sales in the first half of 2017, as compared to the same period last year.
He hopes this momentum can be sustained, not only for the second half of the year but also into next year.