By WONG WEI-SHEN | email@example.com
It may expand into JB and KK
Focused:(from left) Glomac independent non-executive director Datuk Ikhwan Salim, Iskandar, group executive chairman Tan Sri Mohamed Mansor, group executive vice-chairman Datuk Richard Fong, and independent nonexecutive director Datuk Ali Abdul Kadir after the company AGM and EGM.
KUALA LUMPUR: Property developer Glomac Bhd is not ruling out expanding its landbank in other areas such as Johor and Kota Kinabalu, although its developments are primarily focused in the greater Kuala Lumpur region.
“We are also looking elsewhere as long as there is good returns for the shareholders,” group managing director and chief executive officer Datuk FD Iskandar told a press conference after its AGM and EGM yesterday.
On acquiring land in the Iskandar region, he said: “I don’t think we have missed the boat because Iskandar’s potential is quite great, and it is just starting.”
He viewed the possibility of developing in Iskandar as two-pronged. While it could attract foreign investments, Glomac could also provide affordable homes to Johorians.
However, Glomac would still maintain its focus on the greater KL region, as the demand for new houses is expected to increase to one million in six to seven years, in line with the increasing population.
Iskandar added that the population was expected to rise to 10 million by 2020 from the six million now.
“Either by way of demographic growth or migration, that is an extra four million people in greater KL. Assuming four people to a house, in six to seven years, we would need one million new houses,” he said.
Of Glomac’s 12 ongoing projects, nine are located in greater KL.
Iskandar hopes to maintain its performance for the financial year ending April 30, 2014. For the year 2013, it raked in some RM102.3mil in profit after tax and minority interests, with an all-time high of RM888mil in unbilled sales.
For the first quarter of 2014, Glomac’s unbilled sales stood at RM852mil. It is planning RM1.38bil worth of new launches in 2014, including landed residential projects at Lakeside Residences, Saujana KLIA and Saujana Rawang.
The company’s RM7bil future gross development value can last six to seven years. “But we are not resting on our laurels,” Iskandar added.
While speculation is rife over a real property gains tax hike, Iskandar believes it is fair to punish speculators but unfair to punish actual investors and owner-occupied purchasers.
Meanwhile, Iskandar suggested that other states follow the Kuala Lumpur City Hall formula, which charges developers RM3,500 in lieu of each low-cost house it does not build.
“Syarikat Perumahan Negara Bhd could then use this money to build low-cost houses,” he said.
For every low-cost house that Glomac builds, it loses around RM35,000 to RM40,000, said Iskandar.
He added that in the majority part of the world, governments built their own public housing. “It is only in Malaysia that the responsibility has been given to private developers,” he said.