Sime confident of hitting RM2.5bil property sales despite glut

Jauhari: ‘This financial year, we’ll be launching more than 2,000 affordable homes.’

KUALA LUMPUR: Sime Darby Bhd’s property division, Sime Darby Property Bhd, is confident of achieving its RM2.5bil sales target for the current financial year ending June 30, 2017, despite the current property market glut.

Managing director Datuk Jauhari Hamidi said its financial numbers looked promising.

“God-willing, we should be there. We’re halfway through (the financial year) and we’ll be announcing our latest results at the end of the month.

“We will hit the RM2.5bil,” he told reporters at the Alya WTA Malaysian Open 2017 tennis tournament yesterday.

Jauhari said the bulk of the company’s sales would be derived from affordable housing projects.

“Affordable housing, that’s the theme. This financial year, we’ll be launching more than 2,000 affordable homes. It’s at the right pricing level.

“The prices are determined by the Government, so we should be hitting a good take-up rate.”

He added that Sime remained optimistic despite the challenging market outlook.

“It’s still very challenging. The market is there, but buyers are rather selective, adopting a wait-and-see approach to see what the market is offering.

“It’s a buyer’s market now, so we have to make sure that we know how to reach out to these potential customers,” said Jauhari.

Sime’s property division reported a profit before interest and tax of RM172mil in the first quarter ended Sept 30, 2016, compared with RM102mil in the previous corresponding period.

The increase was mainly due to a gain on disposal of a 100% equity interest in Sime Darby Property (Alexandra) Ltd in Singapore amounting to RM131mil to Aster Investment Holding Pte Ltd.

In the first quarter of its current financial year, the division achieved an overall gross sales value of RM436mil against RM150mil in the previous corresponding period, representing a year-or-year increase of 191%.

Meanwhile, Sime Darby Property’s Alya Kuala Lumpur, which has a gross development value of RM8bil, has become the title sponsor this year of the WTA Malaysian Open 2017 tennis tournament, which will now be known as the Alya WTA Malaysian Open 2017.

The tournament, currently into its eighth year, will be held at the TPC Kuala Lumpur (formerly Kuala Lumpur Golf and Country Club) from Feb 27 to March 5.

Jauhari said Sime’s involvement with the tournament was part of the company’s mission to boost its brand name.

“We are always looking to boost our brand image. One way of doing that is through sporting events,” he said.

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