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Stockwatch: Sunway City sees better FY07

29-11-2006: SunCity sees better FY07 By Isabelle Francis

Sunway City Bhd (SunCity) expects to perform better in its year ending June 30, 2007 (FY07) driven by hefty unbilled sales and property projects with up to RM1 billion slated for launch, said its senior managing director Datuk Wong Choon Kee.
“Last year (FY06), we did launches of about RM650 million. This year it is RM1 billion. We will work towards that target of better profitability,” he said at a media briefing on SunCity's roadmap in Petaling Jaya on Nov 29.
For the 18-months to June 30, 2006, SunCity posted a net profit of RM166.72 million on the back of RM1.57 billion revenue. It has changed its year-end to June 30 from Dec 31.
Wong said that as of Sept 30, 2006 SunCity had unbilled sales of RM726 million, mainly from Kiara Hills and Sunway Damansara projects, which would be realised in FY07 and FY08.
He said that of the RM1 billion property launches, about RM800 million or 80% would be from its four major projects - Sunway South Quay, Sunway SPK Damansara, Sunway Damansara and Sunway Hartamas.
He said its 50ha integrated-resort, Sunway South Quay, was slated for launch in the first quarter of next year, starting with a few units of high-end bungalows.
SunCity holds 60% of Sunway South Quay, which has a gross development value (GDV) of RM3.6 billion, and is mainly targeted at Middle Eastern property investors.
The Employees Provident Fund and Kuwait Finance House (Malaysia) Bhd each holds a 20% stake in the project, which is scheduled for completion in the next eight to 10 years.
With regards to the heads of agreement with Fawanis Sdn Bhd on a joint venture for a RM1.5 billion commercial development in Jalan Cheras, Wong said it hoped to finalise the deal and start construction by the end of next year.
On another matter, he said SunCity was keen on launching a real estate investment trust (REIT), and was evaluating assets to be injected into the REIT.
He added that SunCity was looking at a REIT with a value of between RM1 billion and RM2 billion, which could emerge as the largest REIT in the country.
“We plan (to launch the REIT) not far from 2008. Sunway Pyramid (shopping mall), when extended and tenanted, will be a major asset in that REIT,” he said adding that the Sunway Pyramid expansion was on track to be completed by September next year.

posted by gsg @ 9:04 AM