Ireka: RM1.9b projects over next 5 years

DIVERSIFICATION: High-end developer looking at the mid-market segment

IREKA Corp Bhd plans to launch projects worth RM1.9 billion over the next five years as the company is upbeat about the prospects of the real estate sector, despite the sluggish global economy.

The upmarket developer is planning to launch two projects by end of this year. The projects are for a boutique hotel and serviced residence in Kuala Lumpur and a housing development in Nilai, Negri Sembilan.

Ireka's group managing director Lai Siew Wah said the boutique hotel and serviced residence project is a 30:70 joint-venture between Ireka and Aseana Properties Ltd.

Lai said Ireka is looking at diversifying into the mid-market residential and commercial sectors, as well as modern industrial buildings.

"The residence project will serve as the niche market for luxurious residential units with smaller built-up, 80 per cent of which are 878 sq ft and 906 sq ft," he said.

Speaking at a media briefing after the company's annual general meeting here yesterday, Lai said, the company expects revenue from the property development projects to roll in within two years.

Also present were chairman Abdullah Yusof, executive director Lai Voon Hon and chief financial officer Monica Lai.

Meanwhile, Lai said Ireka is currently eyeing more construction jobs here.

The company has RM745 million worth of ongoing projects, of which about RM400 million remains outstanding.

Among the ongoing projects are works for the City International Hospital in Ho Chi Minh City, Vietnam, two office towers and a hotel block in KL Sentral as well as a high-rise serviced apartment and office project - the Imperia Puteri Harbour - at Puteri Harbour in Nusajaya, Johor.

In the current financial year, the group will continue to focus on replenishing its order book, Lai added.

By Business Times

Glomac nets RM24m in Q1 on record sales

KUALA LUMPUR: Glomac Bhd has announced a RM23.79 million net profit for the first quarter ended July 31 2012, marginally better than RM23.63 million registered in the same previous quarter.

Net profit attributable to shareholders rose 17.3 per cent to RM21 million from that in the corresponding quarter last year, Glomac told Bursa Malaysia yesterday,

For the first three months of its financial year ending 30 April 2013, the group posted 26.1 per cent year-on-year revenue growth to RM161.1 million.

"The record sales we have achieved continue to drive our earnings growth, with key contributions from our broad portfolio of ongoing projects such as Glomac Damansara, Glomac Cyberjaya and our key townships of Bandar Saujana Utama and Saujana Rawang," group executive chairman Tan Sri FD Mansor said.

He said new sales in this first quarter of RM212 million exceeded that in the corresponding period last year by more than 100 per cent.

As at end July 2012, Glomac's unbilled sales were another record high of RM763 million.

Glomac expects the strong sales momentum to continue.

"We have a pipeline of future projects with a total gross development value of RM7 billion, of which we intend to launch RM1.13 billion in this current financial year," FD Mansor said.

By Business Times