Sime Property aims RM1.4b sales for FY20

by HARIZAH KAMEL/ pic by MUHD AMIN NAHARUL

SIME Darby Property Bhd (Sime Property) has set a sales target of RM1.4 billion for the financial year ending Dec 31, 2020 (FY20), group MD Datuk Azmir Merican (picture) said.

It made RM712.5 million in sales with 754 units sold, mainly landed residential in township developments and garnered an average take-up rate of 84% in the first half (1H) of FY20 .

For the rest of FY20, the group will focus on launching landed residential products within the right price range in its flagship township developments worth just over RM1 billion in gross development value.

This covers Elmina West, Bandar Bukit Raja, Serenia City, Bandar Ainsdale, Putra Heights, and Elmina East developments.

Of the stream of launches, the group forecast sales of 601 units valued at RM509.8 million in the third quarter (3Q) and another 1,150 units valued at RM501.5 million in 4Q.

“On the types of units to be launched, about 75% are landed residential units, 12% are statutory, 9.7% are industrial and 2.9% are commercial units,” Azmir said during a press conference on the group’s 2QFY20 performance in Kuala Lumpur yesterday.

Remarking on the company’s weak 1H, he said the group was largely impacted by the Movement Control Order (MCO) in 2Q.

“While we are optimistic for the 2H of the year, we are exercising a lot of prudence. We recognise that although we will recover, the recovery process may take longer. As far as forecasting our results, it depends on how aggressive we will be in 2H,” he said.

Azmir said the residential market is expected to see a slow uptick, supported by various government stimulus, while the retail sector will gradually recover with further easing of restrictions under the current Recovery MCO.

The industrial sector is expected to continue being a “beacon” for the local property segment, as the group sees transactional activities, which were delayed during the MCO, to pick up in 2H.

Tax incentives for foreign manufacturers under the short-term National Economic Recovery Plan will also help position the country in attracting more overseas investments.

The group plans to enhance its complementary business segment, which include the opening of its first wholly owned retail mall, KL East Mall, on Nov 25 this year, and promotion of Tournament Players Club Kuala Lumpur as a lifestyle destination beyond golfing.