Sime targets RM2.4b sales

SIME Darby Bhd is targeting RM2.4 billion gross sales for the various projects it has in 10 townships for the financial year ending June 20 2012.

Sime Darby Property managing director Datuk Wahab Maskan said the company has already made RM1.2 billion sales in the first half of the financial year.

"We are on track to meet this target," he said after the launch of Sime Darby Property's latest property campaign called "Lifestyle Collection", a showcase of its residential and commercial properties in and around Greater Kuala Lumpur area.

However, in terms of overall contribution to the Sime Darby group's revenue, it will still be maintained at about 15 per cent like in the last financial year, Wahab said.

He said the "Lifestyle Collection" features 1,800 landed and strata properties which include top- selling and newly launched units as well as planned units.

The properties are located in Sime Darby Property's 10 townships in Klang Valley and Nilai in Negri Sembilan which range from the cheapest residential unit in Nilai at RM431,000 to over RM1 million.

Wahab, who is also Sime Darby group chief operating officer, said the conglomerate's property unit is still doing well despite the little consolidation in the luxury segment of the property market.

"It is a bit challenging in the high-end market but we believe it is still reasonably strong, especially in the Greater Kuala Lumpur and Klang Valley areas," he said.

Wahab added that the company's properties priced between RM1 million and RM2 million are still marketable.

"(Properties) above RM2 million may face challenges to sell but we do not have many of those."

On the affordable housing market, he said depending on the approval from authorities, Sime Darby Property can build between 4,000 and 5,000 units a year for five years beginning next year.

"We will build our own units and we can also collaborate with the government's programmes," Wahab said.

He said Sime Darby Property has also plans to look out for property deals in places it has operations like Singapore, London and Australia.

Wahab said in Singapore the company is now working out one or two deals that could be the redevelopment of some old properties or a joint venture with local parties there.

He said Sime Darby Property, which has a total landbank of 14,800ha, is always looking for more local and foreign local acquisitions.

Meanwhile, Wahab said the "Lifestyle Collection" campaign will start today until April 14 at its property gallery in Ara Damansara. From April 14 to April 30, the public can view the products at the respective sales galleries of the specific properties.

Some benefits buyers can enjoy during the period include low initial payment, cash incentives up to RM10,000 and waived stamp duties and legal fees.

He also said properties developed by Sime Darby have high appreciative yields of about 15 per cent a year.

By Business Times