KUALA LUMPUR: OSK Property Holdings Bhd (OSK Property) executive director Tan Sri Ong Leong Huat expects the company to have a significant increase in earnings for the financial years ending Dec 31, 2012 (FY12) until FY14 from unbilled sales worth RM800mil.
The RM800mil unbilled sales are contributed by eight concurrent projects. “These unbilled sales can be realised over the next two to three years,” he said, adding that the eight projects had a gross development value (GDV) of RM5bil.
In FY10, OSK Property recorded 134% year-on-year increase in net profit to RM11.87mil on the back of improved sales from its projects located in the Klang Valley, Seremban and Sungai Petani, Kedah. In the following year-end FY11, it saw a further rise of 107% to RM24.62mil compared with its results in FY10.
The increase was again attributed to continuous good take-up of its properties launched and also due to advanced stages of construction work progress in some of its projects.
In the first quarter ended March 31, 2012, the company's net profit increased 174% to RM12.05mil compared to the corresponding quarter last year, attributed to yet again higher sales achieved from its projects.
In addition, certain phases of the projects have reached advanced stages of construction, resulting in a higher percentage of profit recognition.
Ong said: “Now that the group is independent and fully focused on property development, the significant growth in the company is evident.”
Yesterday, the group signed an agreement to engage Beijing Urban Construction Group (BUCG) via BUCG (M) Sdn Bhd as the main contractor for the Atria Damansara project that was launched last November.
BUCG's portfolio includes 19 Olympic projects for the 2008 Olympic games held in Beijing. This included the national stadium, the national indoor stadium and the Olympic village.
“We are very excited to have engaged an international company with an impressive track record and financial standing for the redevelopment of Atria.
“We are confident that BUCG will demonstrate strong execution capabilities to complete the project in a timely manner with a high quality delivery,” Ong commented.
The project would see the redevelopment of Atria, which would see the demolishment of the existing four-storey building structure and two three-storey car park buildings.
The construction would be carried out in two phases, the first of which would be for a four-storey lifestyle shopping mall. The second phase would feature two 16-storey small office flexi office (SOFO) towers.
“The demolition has been done.
“Also the earthwork and foundation has been complete. We are now proceeding with construction of the building,” Ong said.
He added that the Atria project could be partially completed by end-2013, and be operational by early 2014. “The full completion of the project could be in end-2014,” he said.
The 5.48-acre freehold Atria project valued at RM1bil, has a gross floor area of 294,683 sq ft and a net lettable area of 208,400 sq ft. “We have close to 400 SOFO units, which was completely sold within three hours of launching. There are still hundreds on the waiting list,” Ong said. The gross development cost stands at RM270mil, which includes infrastructure costs.
OSK Property has a current landbank size of 1,700 acres. “The 1,700 acres is not inclusive of the eight current projects mentioned earlier. Of course, we are still looking to increase our landbank size,” Ong said.
In terms of the outlook for the Malaysian property market, Ong said there was no real property bubble. “There is still a need for houses, as seen in recent take-up rates of property launches,” he said.
By The Star
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