Catalyst for Glomac expected to boost sales to more than RM500mil

With hand up in the air, high growth expected FD Iskandar told StarBiz and added: ‘These past three years have been exciting for us in terms of growth.’

PETALING JAYA: Glomac Bhd's sales for the financial year ended April 30, 2012 is expected to be more than RM500mil buoyed by strong demand in its three major townships.

This will be the catalyst for the mid-sized property developer to record positive growth for the year under review. The company will announce its financial results early next week.

Glomac has registered about RM400mil sales in financial year 2011.

Group managing director and chief executive officer Datuk FD Iskandar told StarBiz that the sales for its township development in Sungai Buloh, Rawang and Sri Saujana in Johor did very well.

“These three townships contributed total sales of about RM270mil as of April. And as of Jan 31, we already recorded sales of about RM343mil and we are confident of crossing the RM600mil mark for 2012.

“About 97% of our Reflection Residences in Mutiara Damansara launched in April has been taken up.

“These past three years have been exciting for us in terms of growth and we are on a strong foothold now for further development with gearing of about 0.1 times and net cash position of RM350mil,” he said, adding that prior to 2009, the company chalked up sales of between RM200mil and RM250mil.

To illustrate the expected growth for 2012, the company's nine-month net profit ended Jan 31 of RM63.5mil had already surpassed the whole of 2011's net profit of RM63mil.

Going forward, Iskandar said Glomac's current unbilled sales which could be translated into profits in two to three years' time stood at RM700mil.

“We have been expanding on our land bank quite robustly in the last 18 months where we have purchased about four parcels of land in different locations for a total of RM230mil.

“Among the three prominent ones are the 200 acres in Sungai Buloh with expected gross development value (GDV) of RM800mil, 200 acres in Dengkil with slated GDV of RM800mil and another 200 acres in Puchong with forecast GDV of RM2bil.

“We will launch the Sungai Buloh development by year-end. We will also be looking at developing our land in Sepang where our 200 acres are about 3.5km away from Cyberjaya and 4.5km to KL International Airport,” he said.

On its strategies, Iskandar revealed that Glomac was keen to build landed property as there was good demand for it currently.

“We are also interested to acquire more land in the Greater Kuala Lumpur area with the right prices,” he said.

By The Star