Harimau Capital

Glomac is a household name particularly in Kelana Jaya where it is credited with transforming the once undeveloped area into one of Petaling Jaya’s busiest and most bustling townships. Posted Date: Jun 13, 2011 By: iProperty.com

Not resting on its laurels, the medium-sized developer with a big vision is continuously striving to do better by coming up with better offerings. We talked to its Group Managing Director/ Chief Executive Officer Dato’ FD Iskandar to get the latest updates. iProperty: How has the response been for your current projects? FD Iskandar (FDI): Glomac Damansara Residences, which is within our Glomac Damansara mix development project, has 356 units of apartments ranging between 876 to 2,000 sq ft – 70% of the first tower has been sold. We saw an encouraging take-up rate for the second tower during its preview. Bandar Saujana Utama, our thriving and self sustained township has also seen very good sales. Each year, we usually see between RM90 -RM100 mil, but for this financial year (ending April 30), we’ve sold about RM151million. The demand for landed properties is great now. In 1997 when we first started Bandar Saujana Utama township in Sungai Buloh , we sold double-storey terrace houses for RM90,000. Today we’re selling them above RM300,000. So for Bandar Saujana Utama,I expect to sell at least another RM100 million this year. I think we’ll do better than the current RM77 million for Saujana Rawang , too. All of these are made possible by better roads and amenities that have come up in this area. iP: What new offerings can we expect for 2011? FDI: We started Glomac Damansara about a year ago and it remains one of our main projects that will keep us busy. The GDV is around RM900 million and to date we’ve sold about RM350 million, with RM550 million still to go. Within Glomac Damansara, we are developing a second tower and retail units and of course, we’ve got 2 more office towers there. The last phase of Plaza Kelana Jaya will consist of a neighbourhood mall and an office block. When we launched Suria Stonor in 2006, we sold some 42 units to a property fund. When the 5-year life cycle ended last February, we bought back 18 units. In addition to 3 duplex units, we’ll be repackaging and reintroducing these 18 back into the market by the end of June. As for Suria Residen in Cheras , the first section in phase one has been fully taken up, completed and handed over. By the end of May 2011, we will be launching the final section of this phase, which consists of 16 semi-d units. In the future, we will be developing bungalows across the 42 acres of land. We have another development planned between Bandar Utama and Damansara Utama. We bought two pieces of land last year, the first piece is about 3.8 acres and by February 2012, we plan to launch commercial units of 2 ½ storey shop offices there. Another exciting development that buyers can look forward to is the Glomac Mutiara Damansara Residences, right at the heart of Mutiara Damansara. This 35-storey apartment will hold close to 300 units. It’s within walking distance to Tesco, Ikano and The Curve. We’re hoping to launch this freehold development, with GDV of approximately RM260 million, in January 2012. When we bought the land (close to 3 acres), we initially wanted to build office blocks. But looking at the area today, it already has a lot of office buildings. We feel that it’s high time Mutiara Damansara sees an iconic luxury condominium/apartment, as there’s currently only one apartment in the area. I think ultimately this is where our strength lies, our small size makes it possible for us to listen to the market, look into details and move much faster as there are fewer red tapes to deal with. These are some of the offerings we have for the next 12 months or so. This is an exciting year for Glomac, now it’s a matter of implementing and delivering our products. We still have GDV worth about RM3.5 billion to go. So if every year we can sell about RM500 - RM600 million, that will last us about 5-6 years. But of course, we are not stopping there; we are always aggressively looking for land. iP: What are the updates on Glomac Cyberjaya? FDI: We entered Cyberjaya with the belief that every neighbourhood must have an SS2 or Seapark, this was our original concept. The response to our Glomac Cyberjaya shop offices has been overwhelming; we saw banks and food outlets snapping up units because they want to capitalize on the 300,000 residents living there. So we bought another 8 acres of land, where we are building 68 units which will be launched this August. We already have 600 registrants for that. Once the first phase is completed by early next year, it will become the buzz of Cyberjaya/Putrajaya. We’ve also got a 15-storey tower, with numerous rental requests because there aren’t many office towers for rent in Cyberjaya. Now we’re compiling the list and if we have 70-80 % commitment, we will start building the office tower. We’ve got more than half so far. iP: What are the special features that deserve mention about your projects? FDI: I always tell my team, no matter what we sell, whether it’s a RM250,000 terrace house or a RM15 million apartment, put yourself in the buyer’s shoes. Property to me is one of the biggest investments you can make in your lifetime, it’s no fun getting the key and you come in all excited only to find leakages around the house. I think Glomac is one of the few property developers in Malaysia that provides after-sale service. Our maintenance team of over 100 is made up of plumbers, electricians and general workers. We don’t make any profit out of it, but of course we don’t want to lose money. For a small fee, our maintenance team will fix cracks, leakages and so on. At Glomac, we maintain the property for at least 2 years after the project is completed. After this period, you can get somebody else but a majority of them continue with us. We acknowledge the fact that Glomac is a medium-sized company; our paid-up is only RM300 million and our market cap is less than RM600 million. We are in an industry where there are bigger-sized developers, so we must be more innovative. This is our 23rd year, we better be good at it. Of course we strive to be the best but we can’t afford to be mediocre. iP: What can we expect to see in terms of your landbank acquisition this year? FDI: About 3 months back, we’ve managed to buy a 200-acre piece of land in Puchong. It’s behind Tesco so it’s a very good location. We are still at the planning stage for this. We’re definitely on an acquisition trail; we’ve got a small war chest so we’re in a very good position to acquire today. Our focus would be more on Greater KL. This is because we are very familiar with the area and we’ve already got a brand name here – people know Glomac. We’re also looking at the trend of urban migration and the government’s projection that by 2020, 7 out of 10 Malaysians will live in urban cities. When you look at the sales trend last year, no matter how well Penang and Iskandar did, the bulk of it is still in the Greater KL. That doesn’t mean that if we get a good deal in Penang, we wouldn’t go. We’re already in Johor and Malacca, but again, the concentration is here. iP: How do you foresee the property market outlook in the 3rd Q of 2011? FDI: Property depends on the economy, so as long as the economy is doing well, I think the property market will do well. As it is, property in Klang Valley/the Greater Kuala Lumpur is still hot today. With the recent increase in interest rates, people will hedge their portfolio to property. And property is your safest bet against inflation. Other things may go up and come down, but property will stabilize in the worst possible scenario. In most instances, it goes up. Property will continue to do well in Malaysia; we’re a nation of 27 million people, of which 69% are below the age of 35. With a steady population growth of 2.5%, residential, commercial and industrial properties will always be in demand. I don’t think there’s a property bubble in Malaysia, unlike in Singapore where your property price doubles in 6 months. We have a steady rise here, and even when they said we rose by 10% in Klang Valley last year, it was an organic growth. When you compare us to Jakarta, Manila and Bangkok, we are still the lowest in terms of increase in percentage growth. iP: What sort of appreciation can investors expect from your latest projects? FDI: We expect good appreciation for our Glomac Damansara and Glomac Mutiara Damansara Residences, because in these areas, there is no more land available. So far most of our buyers have been lucky; they’ve managed to get capital appreciation. This is why we have repeat buyers, especially for our commercial properties. We’re also quite fortunate to have a few MRT stations within walking distance to our projects. There’s one just next to Glomac Damansara and in Mutiara Damansara, it’s about 100m away from us. They’re still finalising between building a station next to Tesco or IOI Mall. Either way, it will benefit our project. Having said that, everything depends on the economic situation of the country. About 3 - 4 years ago, there were concerns on where the economic situation was headed but now I am much more confident. The ETP (Economic Transformation Programme) and GTP (Government Transformation Programme) will definitely help our developments. Our hope is that government servants will rise to the occasion when it comes to implementing these policies efficiently. Taking into account any unforeseen circumstances, I think domestically within the country, we are on the right track. Enviable track record Dato’ FD Iskandar : “Since 1988, Glomac Berhad has grown from strength to strength. Our experience and proven track record in developing homes, commercial centres and townships has solidified Glomac’s reputation as a progressive and trusted property developer. Today, Glomac Berhad comprises more than 40 subsidiaries with involvement in property development, property investment, construction, property management and car park management. To date, the Group has completed more than 15,000 residential and commercial units. Apart from the residential development, the Group has also successfully completed over 5.5 mil sq ft of commercial space. Glomac is entering a new phase of growth as it targets to launch more than RM1bil worth of properties. Property development remains the core focus of the Group since its inception. We are a long term player committed to escalating our presence in the real estate market particularly focusing in the prime area of Greater KL, where the Group is well established. Glomac is continuously planning and designing new projects for our existing landbank, and we are constantly evaluating and looking out for new landbank opportunities in the country. From managing just over 3 projects a year, Glomac now has 15 on-going projects including 3 well-received townships and various residential and commercial developments focused in Greater Kuala Lumpur. In the late 2007, we caused quite a stir in the market by setting a record price when we acquired a 1.3 acre land opposite the Petronas Twin Towers, KLCC. This site became Glomac Tower, an A-Grade commercial building sold en bloc for a record price of RM1, 120 per sq ft. To date, it still holds the highest commercial transaction cost in town.” Developer Information: Glomac Berhad

All eyes and ears on second MRT
By TEE LIN SAY
linsay@thestar.com.my

KUALA LUMPUR: The second mass rapid transit (MRT) line, which circles the Kuala Lumpur city centre (KLCC) orbital and known as the “circle line”, is already in the final planning stage.

The details are expected to be announced in March.

“Its alignment must depict the current and future business districts in Kuala Lumpur,” said Minister in the Prime Minister's Department and chief executive officer of Pemandu Datuk Seri Idris Jala during an Economic Transformation Programme (ETP) update to analysts and fund managers recently.

In the longer term, a third line to Port Klang was being comtemplated, he said. The circle line is expected to cover the hotspots surrounding the KLCC, Jalan Bukit Bintang, the new Kuala Lumpur International Financial District in Dataran Perdana, KL Ecocity, Pusat Bandar Damansara and Sentul, among others.

Meanwhile, the “blue line” the first line which is a 50km alignment that covers Sungai Buloh to Kajang, via Pusat Bandar Damansara and Bukit Bintang is slated for completion in 2016. The network of all the three MRT lines will be fully operational by 2020.

“Greater KL now has a population of 6 million people. By 2020, we will have 10 million people. If we don't have the MRT, the city will be choked. Right now, nearly everybody drives. This is not sustainable,” said Idris.

He added that currently 13% of people commuted using urban transportation. Under the ETP, Idris said this should increase to 50%, adding that the funding structure for the MRT would be disclosed by end-February.

“Apart from reducing travelling time, the MRT will also cause property prices to appreciate because of better accessibility. If your house is near the MRT station, prices will go up because of the commercialisation created around the area,” said Idris.

Some analysts are wary of the ambitious plans laid out by Pemandu.

“As usual, it's a case of execution. Will the Government be able to actually implement the project? We'll need to see it being done to believe it. More importantly, how is the Government going to fund this project?” asked a construction analyst.

Another analyst said the Government was likely to reduce cost by getting developers to co-fund some of the MRT stations.

On implementation, he said that Pemandu would have learnt from past lessons of the LRT, monorail and commuter train.

Some brokers have notably been able to analyse the impact of the proposed MRT comprehensively.

In a Malaysia Market Strategy Report titled “Property boom-boom” released on Jan 26, global investment bank UBS' head of research Chris Oh said Malaysia was set to enjoy improved connectivity in the coming years with the proposed infrastructure rollout of the MRT system and possible high-speed rail linkage between Kuala Lumpur and Singapore.

He said the MRT captured the imagination of the people, developers and investors. He expects property value around a radius of 20km of the city centre to rise significantly.

The preference would be on developers who have vast landbank with high-density mixed development around MRT stations.

“Interest in Malaysian property will be fuelled by foreigners looking out for higher returns (via undervalued currency and low entry costs) than their home countries (Singapore and Hong Kong) and the absence of significant restrictions on property ownership by foreigners,” said Oh.


Singapore-based DBS Research was the first to issue a property sector report titled “Entering a Golden Era” on Jan 14, analysing the impact of MRT on the property sector.

The analyst, Yee Mei Hui, said: “The MRT system is expected to be a structural catalyst for the rise in value of the real estate surrounding MRT stations.”

In the report, the firm was projecting boldly that land values in MRT hot spots could jump by up to six-fold over the next five years.

She said the MRT would have a strong structural impact on the Kuala Lumpur real estate, given that the KL city had been under-invested since the last wave of mega-projects in the late 1990s.

The new MRT will create new opportunities for high-density mixed developments, urban renewal and new suburban townships.

In turn, this has boosted the potential for land prices to reach new peaks with higher plot ratios and more commercial developments. Other than existing prime areas, she identified KL Ecocity, Pusat Bandar Damansara and Sentul as new locations for high-density developments to watch out for.

CORPORATE PORTRAIT By ANGIE NG

PETALING JAYA: Glomac Bhd, a medium-sized property outfit, is on an exciting growth path as it undertakes more niche developments with fast turnaround time in Greater Kuala Lumpur.

The company has a broad range of affordable to higher-end projects. Its 13 ongoing projects include townships in Sungai Buloh and Rawang in Selangor and in Kota Tinggi, Johor, as well as some niche residential and commercial projects in Greater Kuala Lumpur.

For the six months ended Oct 31, 2010, its revenue surged 98.5% to RM267.2mil while pre-tax profit rose 87.5% to RM61.5mil. Net profit attributable to shareholders grew 78.4% to RM31.4mil.
Some of the completed units at Suria Residen, a low-density, gated housing developed by Glomac in Cheras.

In a recent note, ECM Libra Research said Glomac was on the brink of higher earnings and land bank.

An analyst with a local brokerage concurred, saying the company could look forward to strong double-digit growth of at least 30% over the next three years.

As at end-October 2010, Glomac has unbilled sales of RM572mil, which will be one of its key earnings growth drivers, going forward.

For the financial year ending April 30, 2011, Glomac has set a sales target of about RM500mil.

Going forward, the company can look forward to growing contribution from some of its key ongoing projects like Glomac Tower, Glomac Damansara, Glomac Cyberjaya and Bandar Saujana Utama.

Glomac Damansara Residences, a 2-tower serviced apartment project with an estimated GDV of RM240mil, is set for soft launch in the middle of next month.

Other projects earmarked for launch over the next 12 months will have a combined GDV in excess of RM1bil.
Suria Stonor being developed by Glomac in Kuala Lumpur.

These include a boutique mall in Glomac Damansara with an estimated GDV of RM145mil, Glomac Al Batha Mutiara serviced apartments (RM250mil) and Glomac Utama, a mixed development within the vicinity of Bandar Utama (RM400mil).

One of Glomac's core strategies is to acquire land bank that offers potential for prime and sizeable greenfield developments in Greater KL.

Its recent acquisitions include a 200-acre parcel in Puchong and seven acres in Cyberjaya.

The Puchong land, purchased at RM8.84 per sq ft, has a potential GDV of RM800mil. Glomac will start developing it in about 12 months and the project will comprise terrace and semi-detached houses as well as villa apartments.

The seven acres of commercial land in Cyberjaya were purchased at RM90 per sq ft.

The mixed commercial project planned for this year will have an estimated GDV of RM250mil. It will be an extension of the ongoing Glomac Cyberjaya project launched about two years ago.

Glomac was founded in 1988 by two entrepreneurs, Tan Sri FD Mansor and Datuk Richard Fong.

The company was listed on Bursa Malaysia main board on June 13, 2000. In 2003, it received ISO 9001:2000 certification.

Glomac has completed about 15,000 residential and commercial units with sales totalling RM4bil. It has also completed 5.4 million sq ft of commercial space.

The completed high-end residential developments include gated-and-guarded communities of Aman Suria Damansara in Petaling Jaya, Lakeside Residences in Puchong and Suria Residen, Cheras.

Suria Stonor, a luxury condominium in the vicinity of Kuala Lumpur City Centre, is Glomac's jewel in the crown.

In late 2007, Glomac acquired a 1.3-acre site opposite Petronas Twin Towers and developed it into Glomac Tower, the company's first commercial high-rise project in Kuala Lumpur.
Artist’s impressions of Glomac Tower.

Glomac Tower, a grade A commercial building, has been sold en-bloc at a record price of RM1,120 per sq ft. The project will be completed in the middle of this year.

In 2006, Glomac made two overseas investments. They comprised an office building with car parking lots in Melbourne and a “built-to-suit” warehouse in Bangkok. Both are contributing steady rental yields to the group.

Glomac is now helmed by Datuk FD Iskandar, who is group managing director-cum-chief excutive officer.

The group comprises about 40 subsidiaries involved in every facet of real estate business including property development, property investment, construction, property management and car park management.

2011/01/26 10:51:06 AM
●南洋商报

（吉隆坡25日讯）高美达（Glomac，5020，主板产业股）以7700万令吉收购一块位于雪州蒲种的土地，普遍上都获得分析员看好，合理价也获得上修。

高美达向Score Option私人有限公司买入蒲种的地皮，并计划发展成排屋或是半独立式的住宅房产发展计划，毛发展总值估计为8亿令吉。

马银行投资银行假设这项计划的税前赚幅为30%以及发展期3年，将公司2013财年盈利预测调高26%，并且将净资产值提升31仙至2.99令吉。

成交价比市价低

分析员指出，公司以7700万令吉买下蒲种这块200英亩有期地契土地，是很好的交易。土地成交价格为每平方尺19.64令吉，明显比蒲种一带的成交价格每平方尺32令吉至48令吉来得低。

这块地皮位于策略性地点，靠近蒲种商业中心，IOI广场以及特易购霸市为这块地皮最靠近的地标。因此，购入这块地可让公司直接进入高成长的蒲种产业市场。

拉昔胡申提及，尽管每平方尺的成交价格为19.64令吉，不过这块地皮内的湖泊，就占了27.7英亩，而公司正打算为三分之一面积填土，以做未来发展。

除却这一个湖，这块地的净发展面积为62.3英亩，有效土地成本为每平方尺28令吉。

益资利证券也提到，高美达2003年就已与这块地地主Score Option达成联营协议，以在这200英亩土地的90英亩打造湖边住宅。

产业价飙升不少

自从在2005年推介第一期来，这项发展计划就因为这两家公司的纷争而搁置。

无论如何，对于高美达而言，现有的正面因素为自从公司推出第一期以来，蒲种产业价格已飙升不少。

分析员指出，公司2005年推出第一期的排屋价格为30万令吉，目前叫价44万令吉。

Written by Financial Daily
Tuesday, 25 January 2011 11:36

KUALA LUMPUR: Glomac Bhd has further expanded its land bank after acquiring 200 acres in Puchong for RM77 million.

In an announcement to Bursa Malaysia yesterday, the company said its wholly owned subsidiary Glomac Alliance Sdn Bhd had on Jan 21 entered into a sale and purchase agreement with Score Option Sdn Bhd (receiver and manager appointed) for the purchase of the said property.

“The land is located about 900 metres off the right side of Jalan Puchong travelling towards Putrajaya/Cyberjaya from Jalan Kelang Lama, and is close to established development areas such as Pusat Bandar Puchong and Taman Perindustrian Puchong,” it said.

It is worth noting that the purchase of the land excludes residential units forming part of the buildings which have been sold to Austral Development Sdn Bhd; vacant lots sold by Austral; residential units sold by Glomac Alliance; and units sold by the previous proprietor of the land, namely Serangkai Emas Sdn Bhd (in liquidation).

Glomac said the purchase is in line with its core strategy of acquiring suitable development land bank within the Klang Valley with strong potential for prime and sizeable new developments.

“The land is strategic as it is relatively sizeable and hence ideal for a wider mix of products, and is in close proximity to Puchong’s established commercial hub whereby IOI Mall and Tesco Store are located in the immediate vicinity. The location is well serviced by several major highways such as Lebuhraya Damansara-Puchong (LDP) and Shah Alam Expressway (Kesas),” said Glomac.

In fact, Glomac had before this entered into a joint venture with Score Option to develop 90 acres — which is part of the 200 acres — in 2003.

The company said it had in 2005 launched the maiden phase of this development, known as “Lakeside Residences”, and has since successfully completed and handed over the properties to the purchasers.

However, as a result of a dispute with the vendor Score Option, the development of subsequent phases was put on hold despite the strong positive response to Phase 1, it added.

“The proposed acquisition will now allow Glomac to take full control of the 90 acres under the earlier joint venture agreement, and further extend its land bank in the same location to 200 acres, to further capitalise on the proven success of Phase 1 of ‘Lakeside Residences’,” said Glomac.


This article appeared in The Edge Financial Daily, January 25, 2011.

By Sharen Kaur

Published: 2008/08/04

By Sharen Kaur

Published: 2008/07/28

NST

The developer is now scouting for land in Bangsar, Sri Hartamas, Damansara and the Kuala Lumpur city centre
DEVELOPER Glomac Bhd may build more Grade A office towers in Kuala Lumpur after its first such project was snapped up even before it started any work.The company is now looking for land in prime areas like Bangsar, Sri Hartamas, Damansara and the city centre, group executive vice chairman Datuk Richard Fong said.Glomac has sold the Glomac Tower in Kuala Lumpur, a 40-storey building next to the Petronas Twin Towers, to Prestige Scale Sdn Bhd, a company run by a local businessman for RM1,160 psf or RM577 million. The deal was done at the end of 2007.

"Glomac Tower is the first en bloc sale for us off the plans. We got an offer from Kuwait Finance House and Prestige we could not refuse as it was a good deal. We hit record price, which had set a new benchmark for Grade A office buildings for the city centre," Fong told Business Times in an interview recently.

The land was acquired last year by Glomac Al Batha Sdn Bhd for about RM1,000 psf from the Tan family of the Continental Hotel group. Glomac Al Batha is a 51:49 joint-venture firm held by Glomac and Al Batha Group respectively, one of the largest private business concerns in the United Arab Emirates.

On the construction of Glomac Tower, foundation work will start in August and done in 12 months, followed by the main building, which will be completed by August 2011. Fong said the project will be affected by higher raw material prices, but it has enough margins to cushion the increase in construction cost. "We didn't anticipate the cost to go up by so much. The increase exceeded our expectations, but still we are able to make a handsome profit," he added. Glomac Tower was initially worth RM450 million. It was revalued when the net floor area increased from below 500,000 sq ft to 550,000 sq ft, Fong said.

Glomac Tower will have 30 office floors, two retail and three sky restaurant floors including an open-air rooftop restaurant, four levels of elevated car park and four levels of basement car park. It will be built in compliance with the requirements of the Multimedia Super Corridor (MSC) so that an application could later be made for MSC status.

2008/02/01 18:06:11●南洋商报
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（吉隆坡1日讯）高美达（Glomac，5020，主板产业股）发表文告指出，该公司上周二与曙光资本（Suria，6521，主板贸服股）签署合作备忘录，双方同意共同发展一块在沙巴州总面积23.25英亩土地。
该项重新发展土地位于亚庇非常有利位置，发展旨在提高当地的吸引力及竞争能力，为了配合沙巴在世界知名旅游胜地的身分，该计划名为“洁雪桐码头”（Jesselton Waterfront）。 -->-->该公司文告指出，该公司以超过20年建造豪华公寓、办公楼及商业中心的经验，高美达预计在该项计划中建造2栋豪华公寓，办公楼及一座5星级的服务式公寓。 该项计划也是吸引各方投资者的黄金计划，预料可以吸引来自韩国、香港及台湾投资者，亚庇一向以优美环境见称，并成功吸引世界各地旅客。

Saturday November 3, 2007
The Star By SHANNEN WONG
PETALING JAYA: Glomac Bhd’s joint venture (JV) company Glomac Al Batha Sdn Bhd received an attractive offer price of RM577mil for its 40-storey Glomac Tower next to Petronas Twin Towers, said AmResearch.
“An earnest deposit of 2% of the purchase consideration has been paid by Prestige Scale Sdn Bhd,” it said, adding that the company’s details were not disclosed. The building, on which construction will start next year, sits on a 57,025 sq ft piece of land Glomac bought in November last year for RM1,000 per sq ft (psf), it said. According to the report, the plot ratio obtained by Glomac was 12 times, hence using an efficiency ratio of 75%, the average selling price for Glomac Tower worked out to be circa RM1,120 psf, noting that this was a new benchmark for office space. Analysts believe that the sale would have a positive impact on Glomac, seeing that it would free some working capital for Glomac, given the potentially high development cost, and the attractive selling price of around RM1,000 psf when there is no guarantee that the buoyant office cycle would hold up when the building is completed by 2011. Assuming the rental cycle for prime office space in Golden Triangle holds at RM7 psf and a service charge of RM1.50 psf, the capital rate is circa 7%, said AmResearch. Glomac Al Batha Sdn Bhd is a 51%: 49% JV between Glomac and Al Batha Group from United Arab Emirates. It was set up to jointly develop Glomac Tower, AmResearch said. However, the research house is retaining its “hold” recommendation on Glomac with an unchanged target price of RM1.46, based on 15% discount to its net asset value estimates. Meanwhile, another research house said the sale of Glomac Tower at RM577mil, which would be completed by year-end, is 15% higher than the research house’s projected gross development value (GDV) of RM500mil, although it was 4% lower than the management’s target GDV of RM600mil. It added that the variance was largely due to the research house’s conservative assumptions on the project’s plot ratio of 10, compared with Glomac’s targeted 13.
The research house is maintaining its market perform rating on the stock. Based on Bloomberg consensus, TA Securities Holdings Bhd and ECM Libra Avenue Bhd have a “buy” call on the counter, with a target price of RM2.10 and RM2.00 respectively.

Glomac warrants will be listed on 30-Oct-07 and expired on 24-Oct12. The conversion price is RM 1.10. With current mother share price of RM1.40. The warrant should worth RM0.30. Investor can accumulate the warant price below RM0.40. Given current bright outllokok of the property market, if Glomac share go up to RM2.00 then the warrant will worth for RM0.90.

Press statement by YBhg Tan Sri Dato’ F.D.Mansor, Group Executive Chairman,
Glomac Berhad, on the Group’s unaudited results for the quarter ended 30 April 2007

Exciting Prospects Ahead With Launching Of New Projects
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Glomac Berhad today announced an increase of 83.5% from the previous quarter in the group’s latest unaudited revenue of RM109.0 million for the fourth quarter ended 30 April 2007. In the quarter, the Group registered profit before tax of RM19.5 million, whilst net profit after minority interest was RM16.3 million, an increase of 31.8% and 117.3% respectively.
For the financial year ended 30 April 2007, the Group delivered profit before tax of RM50.7 million and net profit after minority interest of RM32.2 million respectively. This was achieved on the Group revenue of RM293.2 million, compared to RM285.5 million in the previous financial year.

Consistent with the previous financial year, Glomac is proposing a final dividend of 5sen per share, which translates to a total dividend of 9sen per share for the year. Group Executive Chairman, Tan Sri Dato’ FD Mansor said, “It is a good set of results for the Group, driven mainly by the success of our key projects such as Plaza Glomac and Suria Stonor. Sales in Suria Stonor have continued to climb higher. The project is now almost 80% sold, and we are on schedule for completion in April 2008. Our pricing is now about RM1,000 per square foot, which is reflective of the current pricing for high end condominiums in the vicinity of the city centre.” “Near term, we are going to be kept very busy. The Group has several new and exciting projects lined up that will drive our earnings growth over the next few financial years. We will start work on Glomac Tower early next year, which will be timely given the shortage of Grade A office space in the KLCC area.”

Glomac Tower is a RM550 million commercial high-rise development on a prime 1.3 acre site opposite KLCC Twin Towers. In early 2008, the Group will also be launching the first phase of its mixed commercial development on Jalan Damansara in Kuala Lumpur. The project comprises of shop offices, office suites and serviced apartments with a total estimated development value of RM500 million. Other new projects to be launched in 2007/2008 includes Glomac Galleria, a RM85 million commercial development in Desa Sri Hartamas and a gated mixed development in Bangi, also with a gross development value of about RM120 million.
“Glomac has proven that it has been successful in consistently adding projects and landbank to enhance its growth prospects. Over the past two years, the Group has added another RM2 billion worth of new residential and commercial projects into our expanding portfolio.”
He added, “The Group anticipates a bright earnings outlook ahead. Our unbilled sales to-date stand at a record high of RM358 million. We also have more than RM700 million worth of products for sale this year, and with our strong concentration of commercial and high end residential projects, we believe we are well positioned to capitalize on the current buoyant market conditions.”

Developer Glomac Bhd sees exciting days ahead as the boom in Singapore, reportedly the hottest property market in the world this year, is extended into Malaysia. Glomac is stepping up its plans to market larger commercial properties
(TheStar 23/7/07)

Glomac Bhd has long been known for developing commercial properties in the Kelana Jaya area and a township in Rawang, Selangor.
It could be due to this perception that Glomac's share price trailed at RM1.67, having seen better days in 2004 when it reached a high of RM3.38. This went against the grain in the property sector where many stocks are around their 52-week, or even record, highs.
This under-performance of Glomac's price was also partly caused by its flattish earnings during the last three years, when net profit was held at around RM39mil each year, compared with the steady growth of some of the other property companies.
That performance gap is set to change as Glomac has a couple of high-value commercial projects in the pipeline.
It will be building the proposed 40-storey Glomac Tower on a site close to the Petronas Twin Towers, where values are soaring.

An srtist's impression of Glomac's Plaza Kelana JayaGlomac and Al Batha Real Estate Co of United Arab Emirates acquired the land for RM57mil cash. “We bought the land six months ago for RM1,000 per sq ft (psf) and today, the land itself is worth RM2,000 psf,” Datuk Richard Fong, Glomac executive chairman, told StarBiz.
The company is considering a few options. “One option is to sell it off the plans. A second option is to sell it on completion with tenants,” he added. The attraction of a sale on completion is the office building could be launched at a price of RM1,000 psf, but Fong reckoned it could be worth RM1,500 psf by the time of its completion in two years.
Glomac is keen to capture the value in its projects after the experience with its Suria Stonor condominium.
A year and a half years ago, it sold about half of the units in Suria Stonor to ING Real Estate at 600 psf, which ING later sold RM1,100 psf. Now ING has stopped selling, preferring to keep the rest of its units to sell on completion, Fong said. Suria Stonor is under construction and is also located near the KLCC area.
Besides Glomac Tower, the group plans to develop a sizeable mixed commercial project near Damansara Kim in Petaling Jaya. This project, currently called Lot 73, Jalan Damansara, has a gross development value (GDV) of about RM500mil.
It is believed both Glomac Tower and Lot 73 could have pre-tax profit margins of around 30%, much higher than its margin of just 11% for the year ended April 30, 2007. Furthermore, as both projects carry high GDVs, the company should perform much better in 2009.
Glomac has a market value of RM367mil, which is small for a developer in the Klang Valley. DNP Holdings Bhd, which is developing a luxury condominium in the KLCC area and from which earnings would be booked in 2009, has a market value of RM832mil. DNP, however, is a member of the Wing Tai Holdings Ltd group, which has a market value of S$2.7bil (RM6bil) and is well-regarded there for its high-end properties.
With a long track record of developing commercial properties, Glomac is expected to execute its planned projects successfully. Its current commercial project, Glomac Boulevard in Kelana Jaya, is fully sold. This has a GDV of RM90mil.
Glomac launched properties with a combined GDV of RM189mil in its 2007 financial year while its launches for 2008 would expand to RM1.1bil. “These are exciting times in the property market,” as Fong put it.

Glomac Bhd is steering away from township projects to focus on high-end properties in the city centre

By S.C. CHEAH

GLOMAC Bhd has two major commercial developments worth a combined gross development value (GDV) of RM1.1bil that will see it move towards high-end, niche residential and commercial properties in the Klang Valley.
The projects are the 40-storey, Glomac Tower in the Kuala Lumpur City Centre (KLCC) area and Glomac Damansara, a mixed commercial and residential development in Damansara Kim, Petaling Jaya. Both have a GDV of RM550mil each.
Vice-chairman Datuk Richard Fong said Glomac Tower, initially to be kept for rental income, would be the group's first office building and the second high-end development in the city centre.
The first was Suria Stonor. The luxurious condominium near KLCC, launched 18 months ago, is 90% sold. The price has shot up from RM680 per sq ft (psf) to RM1,100 psf, a gain of about 60%.
“We will keep Glomac Tower for investment purposes. However, we are open to offers and may consider selling the whole building if the price is right,” he told StarBiz.
The 1.3-acre freehold land at Jalan P. Ramlee and Jalan Pinang was bought for about RM1,000 psf six months ago from the Tan family of the Continental Hotel group.
“It was a new record (price) at that time. We are lucky to buy this piece of land as the value has now appreciated to RM1,300 psf. That's a 30% gain within six months,” Fong said.
The 168m iconic tower with a good view of the Petronas Twin Towers is being developed by Glomac Al Batha Sdn Bhd, a joint-venture company between Glomac Bhd (51%) and Al Batha Real Estate Company (49%), a member of the Al Batha group, one of the largest private business groups in the United Arab Emirates.
Asked why Glomac was building an office building and not a condominium, Fong said there were already many condominiums in Kuala Lumpur but there was an “acute shortage” of grade A office buildings.
Fong said the building plans had not been approved yet. “We hope to complete it in three years,” he said, adding that the construction cost was around RM200mil.
The proposed Glomac Tower in Kuala Lumpur's Golden Triangle. It will be Glomac's first commercial development within the city centre
“Assuming we sell it at RM1,000 psf, it could fetch us RM550mil (in sales),” he said, adding that there was currently an anomaly between the price of office buildings and condominiums. Instead of the former being more expensive, it is the reverse.
For example, he said, the proposed ONE KL condominium in the KLCC area was recently reported to be selling for RM1,600 psf, 60% more than the RM1,000 psf estimated for Glomac Tower.
Fong said Glomac Tower, with a net floor area of more than 500,000 sq ft, would have four levels of elevated car park and four levels of basement car park. Net area per floor is above 17,000 sq ft. There will be two retail floors, 30 office floors and three sky restaurant floors, including a unique open-air rooftop restaurant.
Glomac Tower will be built in compliance with the requirements of the Multimedia Super Corridor (MSC) so that an application could later be made for MSC status.
Its building automation system will include an energy efficient air-conditioning system that saves electricity by making its own ice.
Meanwhile, a seven-acre piece of land - near Desa Kiara condominiums - was bought by Glomac for its Glomac Damansara project two weeks ago for RM150 psf.
It will have two blocks of six and eight-storey shop offices, a 15-storey block shop office with a three-storey podium, a 31-storey tower block with three-storey podium and a 29-storey service apartment with podium. There will be about 3,000 car park bays.
Glomac's aggressive drive to snap up prime land reflects its shift from township developments to projects that yield higher profit margins.
Fong said: ”Over the last two months we have received a lot of enquiries from foreigners like Singaporeans, Europeans and Koreans,” he said, adding that Malaysian condominium prices were 10% the price of condominiums in Singapore some of which had hit S$4,000 psf.

Many of the big property companies stock price had risen to new record high after government continue to improve efficient housing project delivery system; implement more incentives to promote Malaysia property; attract more foreigner to invest in Malaysia property.

The new super condos on right location in KL(KLCC, Bukit Bintang, Monta Kiara) started to price as RM1000psf.

The big cap like IGB, OSKProp, SP Setia, Mahsing, E&O, E&O properties, TA etc..stocks have increased at least 2x-5x compared to 1 years ago.

There are also suggestion/rumour that governmentwill allow EPF owners to withdraw up to 50% to purchase house , this include second house.

After scanning through current listed property companies, I recommend 2 property company still yet to fully appreciate, i.e Glomac and YTL land & dev

These two companies have development on KL valley and focus on Mid to high-end properties development and good management and reputation in the market.

The Glomac and YTL land & development stock prices was closed at RM1.52 and RM1.53 respectively.