IOI PROPERTIES TARGETS RM2B SALES FOR FY2020

Group to focus on affordable housing segment irrespective of profit margin

IOI Properties Group Bhd aims to achieve RM2 billion in sales from new property launches in the financial year ending June 30 2020 (FY2020).

“This year, we will continue to look into affordable houses because that is where the market is right now. The profit margin would be lower, but we will try to launch more products as well,” said chief executive officer Lee Yeow Seng after the company’s annual general meeting, here, yesterday.

He said the property industry would remain challenging in the near term.

However, IOI Properties will actively monitor developments in the sector, especially in the affordable houses segment to achieve the target.

Lee said sales had been picking up since the company’s participation in the Home Ownership Campaign (HOC).

“We managed to bring down the inventories during this period because buyers took advantage of HOC,” he said.

The group had also secured new sales by capitalising on its matured and established townships, such as IOI Resort City, Bandar Puteri Puchong and developments in Johor.

These townships had achieved critical mass and were more resilient to property cycles due to localities near amenities, commercial hubs and established transportation infrastructures.

Meanwhile, the IOI City Mall Phase 2 is projected to add another 1.1 million sq ft of net lettable area to the 1.5 million sq ft space by end-2021, making it one of the largest retail malls in the country.

For the current financial year, the group posted revenue of RM2.20 billion compared with RM2.67 billion during the financial year 2018.

Group revenue on a segmental basis continued to be driven by property development (RM1.63 billion), property investment (RM354.96 million), hospitality and leisure (RM198.01 million) and other operations (RM9.96 million).