The plan aims to assist in diversifying the group’s income streams amid the dismal state of the retail property market
by FARA AISYAH / pic by MUHD AMIN NAHARUL
GLOMAC Bhd is in talks with two data centre operators to assist its diversification into the data centre market.
Group MD and CEO Datuk Seri Fateh Iskandar Mohamed Mansor (picture) said the providers are both local and international players.
“It is still at an early stage, but we have started the process by talking to two parties. However, the discussions were cut due to the Movement Control Order (MCO).
“The plan is to have the data centres in Cyberjaya, and we are looking at their specifications whether this plan can work financially,” he said at a virtual press conference yesterday.
The Malaysian Reserve previously reported that Glomac had planned to include data centres as its investment properties to diversify its income streams amid the dismal state of the retail property market.
Trends show data centres are the next big thing for property players to cater to, as the advancement of technology and the rise of work-from-home arrangements due to the pandemic continue to drive the need for data management.
Glomac expects to sustain its sales and financial performance moving forward, backed by unbilled sales of RM660 million in the first quarter ended July 31, 2020, and the resumption of construction activities post-MCO.
The developer plans to launch more new projects in the financial year 2021 (FY21), comprising mid-market and affordable landed residential projects at Saujana Perdana in Sungai Buloh, Saujana KLIA in Sepang and Saujana Jaya in Johor.
For FY20, the group achieved new sales of RM385 million, an increase of 19% compared to FY19, mainly driven by the success of 121 Residences and affordable landed residential phases at Saujana Perdana in Sungai Buloh.
The strong sales performance during FY20 boosted unbilled sales to RM650 million as at end FY20, a 37% increase from RM476 million in FY19.
Its balance sheet remained strong as the cash position increased to RM176.4 million, while net gearing decreased to 0.28 time against shareholders’ funds of RM1.1 billion.
The board proposed a final single-tier dividend of one sen which was approved by shareholders at the AGM yesterday.
Fateh Iskandar urged the government and Bank Negara Malaysia to look at the probability of increasing non-performing loans (NPLs) due to the absence of moratorium and high unemployment rate.
“We will see NPLs going higher as the moratorium has ended and unemployment rates go up in the near future. We hope the economic crisis can be reversed and a vaccine can be found soon,” he added.