Glomac business booms despite global slowdown

CYBERJAYA: Glomac Bhd, unfazed by the slowdown in global economy, will continue to expand its property development activities in Malaysia.

The company is looking to increase its projects in hand to improve earnings, said its assistant general manager, group corporate communication and marketing, Fara Eliza FD Mansor.

As at July 31, Glomac has a net cash position of RM361.6 million.

"We are increasing our landbank size and plan to launch more medium- to high-end developments. We will go where the market is," she told Business Times in an interview recently.



The company has close to 405 hectares in its pocket with a potential to develop properties worth RM3.8 billion over the next seven years.

Glomac's net profit rose 14.7 per cent to RM17.9 million in the first quarter ended July 31, mainly attributed to strong contribution from previous and ongoing projects.

Revenue for the quarter surged to RM127.83 million, from RM126.31 million a year ago.

Glomac is currently focusing on four projects, namely Glomac Damansara, Mutiara Damansara Residences and Glomac Utama in Petaling Jaya, Selangor, and Glomac Cyberjaya. The projects are worth close to RM2 billion combined.

While the RM1 billion Glomac Damansara has started, the company is aiming to launch the RM250 million Mutiara Damansara Residences and RM400 million Glomac Utama by the end of this year or in early 2012.

For Glomac Cyberjaya, the company is now introducing phase two, comprising 55 units of three to 41/2-storey shop offices worth RM250 million.

"Phase 1, consisting of 63 units of shop offices, was sold out within six months. There is still a lot of demand for the properties," Fara said.

She said the limelight for 2012 will be a yet-to-be-named project in Puchong, comprising mainly residential, valued at around RM1 billion.

"That will be our next flagship project after Glomac Damansara," Fara said.

Glomac had acquired 80ha of leasehold land in Bandar Metro Puchong for RM77 million this year to undertake the development.

By Business Times