Sime Darby Property managing director Datuk Seri Amrin Awaluddin said the JV project would have a GDV of about RM530mil.
KUALA LUMPUR: Sime Darby Property Bhd
achieved its targeted sales for the six-month financial period ended Dec 31, 2018 (FP18) reporting sales of RM1.34bil, one third higher than its initial target of RM1bil.
The group has set a RM2.3bil sales target for the new financial year ending December 31, 2019.
Its financial year-end was changed to Dec 31 from June 30 previously.
Sime Darby Property reported a net loss of RM318.7mil for FP18, as a result of the current period’s impairments, negative contribution from Battersea and higher tax provisions.
“Having addressed our legacy assets and products, we expect an immediate return to profitability as operationally our performance has been positive.
“Our launches during the period were well received and we expect this to continue into the first half of 2019,” said Sime Darby Property chairman Tan Sri Dr Zeti Akhtar Aziz.
Demand for landed products in Serenia City, Selangor, continues to be strong with 99% of Serenia Adiva sold in October.
In July, buyers snapped up 81% of Ayra, which are double-storey landed homes, in Bandar Bukit Raja, Klang.
Going forward, the group expects to achieve satisfactory results for FY19, taking into account the sluggish property market.
Apart from the continuing efforts to reduce inventories, it will continue to launch properties within the affordable to medium price range of RM500,000 to RM800,000 and has targeted unbilled sales of RM2bil for the year.
Speaking at the group’s results briefing on Thursday, Sime Darby Property managing director Amrin Awaluddin said, “The prolonged softness of the property market remains a major challenge but we are hopeful of a silver lining with concerted effort from the public and private sectors.
“We will also continuously review plans for the year to ensure that our pricing strategy and future launches are responsive to market demand.”
The group shall also continue with the disposal of its non-core assets to put its capital to better use.
In early 2019, the group completed the disposal of hospitality asset Darby Park Executive Suites in Singapore.
Sime Darby Property will actively look into more strategic partnerships as part of plans to further develop industrial and logistic properties which will serve as catalytic development for its townships, diversification beyond traditional products and increasing its recurrent income in the longer term.
The group is currently partnering Japan’s Mitsui & Co and Mitsubishi Estate Co Ltd to develop a managed industrial park in Bandar Bukit Raja.
Additionally, Sime Darby Property is expected to commence operations of a new mall, Galleria, KL East, in the fourth quarter of the year.
This will add to the existing investment portfolio which will support the group’s recurring income growth.
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