Sime Darby Property Cautiously Optimistic On Achieving FY18 Target

Last update: 27/02/2018KUALA LUMPUR, Feb 27 (Bernama) -- Sime Darby Property Bhd is cautiously optimistic on achieving its full-year financial year 2018 (FY18) ending June 30, 2018 target due to the availability of potential landbank.

Managing Director, Datuk Seri Amrin Awaluddin, said the company would consider three strategic options to increase the value of returns from the landbank.

"We can develop the land ourselves, find a joint-venture partner and co-develop the area or sell the land if the returns are significant," he told reporters at the briefing of the company's second-quarter results here today.

He said the options would be applied to all of its landbank, including those in the Klang Valley, Negeri Sembilan, Johor, Kedah and Sabah as well as those overseas.

As of Dec 31, 2017, Sime Darby Property has 8,394.39 hectares of developable land worth RM100 billion in gross development value.

"We are now in discussions with local and international strategic partners to develop our land and landed properties, where these partners will provide expertise and experience in industrial logistics and commerce.

"We will also focus on affordable properties in the right market segment range, mainly in landed properties, and key growth areas in terms of location, place and product," he said.

Amrin said the company would be looking into disposing of its land outside of its core focus areas, such as those in Kedah and Sabah, and giving higher priority to the Klang Valley and west coast of Peninsular Malaysia.

Meanwhile, Executive Director/Group Chief Financial Officer, Datuk Tong Poh Keow, said the property market was cautious due to the current challenging market condition due to strict credit and loan approvals.

"Certain types of properties, like high-rises, are facing a lot of challenges and competition in the market, but we are confident that the landed properties in our townships are in demand.

"For example, in the City of Elmina, Bandar Bukit Raja and Serenia City in Selangor, and Bandar Universiti Pagoh in Johor, our products give a range of prices and while the high-end is slightly challenging, the mid-range between RM600,000 and RM700,000 still have strong a take-up rates," she said.

As of the first half FY18 ended Dec 31, 2017, Sime Darby Property has RM1.6 billion in unbilled sales and registered RM1 billion gross sales value, a 21 per cent jump from the previous corresponding period.