by FARA AISYAH/ pic by RAZAK GHAZALI
DAMANSARA Realty Bhd’s property launches will be selective as the company is expected to launch a shoplots project, Aliff Square 3, in Tampoi, Johor, by the end of this year.
Damansara Realty group MD Brian Iskandar Zulkarim (picture) said the company is confident to launch the project, despite the glut in the market due to the high demand for such commercial units in the area.
“We already have a list of people wanting to buy the units, so we are confident we can sell them.
“We are very careful in trying our best to not add on to the property glut. So if we want to build something, we will do enough viability studies to make sure we can sell the units off,” he said at a media briefing in Petaling Jaya yesterday.
He added that Aliff Square 1 was fully sold out, while Aliff Square 2 only has two remaining units.
The Aliff Square 3 development will consist of 68 units of shoplots to be developed over one to two years.
Brian Iskandar said the developer has another 11 acres (4.45ha) of land in the surrounding area of Aliff Square 3.
“The land is more prime than Aliff Square 3. We are waiting for the right time for coming up with something. We are looking at it now, to start planning for it,” he said.
The target for the company this year is to sell the remaining two units in Aliff Square 2, and eight units of Damansara Hills Kuantan, Pahang.
Meanwhile, the property developer expects its bauxite mine in Kuantan to contribute around RM60 million to RM100 million of sales per annum once operational.
“We have 500 acres of land in Kuantan that is rich with bauxite, estimated around five million metric tonnes.
“We are talking about roughly a total value of between RM300 million and RM400 million in selling price, which is a range of RM60 million to RM100 million sales per annum that we can realise from bauxite,” he said.
Brian Iskandar said the company is currently awaiting the standard operating procedures (SOP) approval from the government.
“Our conservative estimate is that three months after the SOP is out, we will get the private mining licence, and three months after that, we will start operations.
“It could be as soon as the end of this year or early next year,” he said.
For the second quarter ended June 30, 2019 (2Q19), Damansara Realty made a net profit of RM3.66 million against a RM330,000 net loss in the previous year.
It also posted earnings per share of 1.15 sen, compared to the 0.1 sen earnings per loss in 2Q18.
The company posted higher profit for the quarter due to the contribution from its joint venture development in Central Park, Johor Baru.
However, quarterly revenue was down 7.14% year-on-year to RM68.93 million from RM74.23 million in 2Q18, mainly due to lower revenue recorded from the integrated facility management and property and land development segments.
Damansara Realty closed two sen or 4.76% higher to 44 sen yesterday, giving it a market capitalisation worth RM140.08 million.