New launches, positive market sentiment to drive Sime Darby Property in FY21

KUALA LUMPUR: A pipeline of property launches worth RM2.5 billion, coupled with healthy product mix and positive market drivers will be the key factors supporting Sime Darby Property Bhd (SDP) to achieve its sales target of RM2.4 billion in the 2021 financial year (FY21), group managing director Datuk Azmir Merican said.

The group’s sales jumped 43 per cent to RM2 billion in 2020 from the revised sales target of RM1.4 billion.

Riding on that momentum, Azmir said Sime Darby Property will launch projects with a gross development value (GDV) of approximately RM2.5 billion (2020: RM1.5 billion) which included a product mix of landed and high-rise residential properties, as well as industrial and commercial offerings.

“Our focus now is to restore the group’s profitability and achieve our ambitious sales target for 2021.

“We have identified areas where we can further harness business opportunities amidst the ongoing pandemic, and are stepping up our customer experience efforts to meet customers’ needs for homes with the right price and sales experiences that are safe and convenient,” he said during a virtual press conference to announce the group’s fourth-quarter 2020 financial performance.

SDP has incurred a net loss of RM478.80 million for the financial year ended Dec 31, 2020 (FY20), compared with a net profit of RM598.53 million recorded in FY19.

Revenue slipped to RM2.06 billion from RM3.18 billion previously, the group said in a filing with Bursa Malaysia today.

Azmir noted that the key launches in 2021 under the Industrial and Logistics segment included Stage 1 of Elmina Business Park comprising 303 industrial units and 78 commercial units with a GDV of RM1.26 billion in the second quarter of the year.

The group will also expand its product offerings to include its first multi-tenant ready-built warehouse with a GDV of RM530 million in Bandar Bukit Raja Industrial Gateway.

Under the residential segment, the group will unveil the luxury high-rise Jendela Residences located in the flagship KLGCC Resort township, with a GDV of approximately RM900 million in March.

This will be SDP’s first high-rise residential project to be launched in 2021, which will broaden the developer’s residential product mix.

“The group’s financial position remains resilient, underpinned by cash balances of RM801.8 million, healthy unbilled sales of RM1.58 billion, and low net gearing ratio of 0.28 times as at Dec 31, 2020, as well as bookings of RM0.8 billion as at Feb 14, 2021,” he added. — BERNAMA

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