UM Land sees 20% rise in profit


  • Business
  • Wednesday, 23 Jun 2004

BY ANGIE NG

UNITED Malayan Land Bhd (UM Land), which is bullish about its prospects, has projected a 20% increase in net profit and 50% jump in revenue for the current financial year (FY) ending Dec 31.  

Its executive director cum chief executive officer Datuk Syed Hamid Syed Hussain Alhabshee said with the improved market conditions, the group could look forward to better sales from its ongoing township developments – Bandar Seri Alam in Johor and Bandar Seri Putra in Bangi, Selangor, as well as the Seri Bukit Ceylon Serviced Residences in Kuala Lumpur. 

For FY 2003, net profit improved 39% to RM14mil although revenue was lower at RM108.8mil compared with RM135.8mil in 2002. 

Speaking after the company's AGM and EGM in Kuala Lumpur yesterday, Hamid said unbilled property sales from the previous year would contribute to the group's expected stronger performance this year. 

With the group borrowings having dropped to RM90mil from RM132mil previously, he said, UM Land would explore more exciting and profitable opportunities in the near future.  

Datuk Syed Hamid Hussain Alhabshee (left) with Mohamed Ali Alabbar at the company's AGM and EGM.

UM Land's 70:30 joint venture with Malaysian Resources Corp Bhd to develop a luxurious condominium project at Kuala Lumpur Sentral is expected to kick off in the third quarter this year for completion in 2008. 

The project would feature two 36-storey towers of 600 luxury condominium units with an approximate gross development value (GDV) of between RM270mil and RM280mil.  

The group's recent acquisition of 500 acres in Tebrau, Johor, for a mixed township development would also contribute to earnings. 

Located in the northern growth corridor of Johor Baru, the project would comprise mainly affordable landed property, apartments and shop-offices, for an expected GDV of RM1bil over a period of seven years. It is earmarked for launch in the middle of next year. 

UM Land chairman Mohamed Ali Alabbar said that riding on the country's improving economy, “the local property market is very healthy with lots of opportunities to be explored.” 

On Wawasan Perangsang Mewah Sdn Bhd's (WPM) proposed acquisition of 24.67% equity stake in UM Land, Hamid said approval from the Foreign Investment Committee was expected to be granted in the next two months.  

WPM has entered into an agreement with Pernas International to acquire Pernas' 57.153 million ordinary shares for RM131.45mil.  

 UMLAN-A :  [Stock Watch]

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