SelProp to launch two stalled projects by next year

SelProp to launch two stalled projects by next year

KUALA LUMPUR: Selangor Properties Bhd (SelProp) will launch two projects, which have been stalled for some time, by early 2008, said financial controller Lee Boon Kian.

The projects are a 107-unit high-end condominium along Jalan Batai, Damansara Heights, and a joint venture with E&O Properties Bhd for offices and serviced apartments on a 6.5-acre site along Jalan Semantan.

The gross development value (GDV) of the first project had yet to be determined, Lee said after the company AGM yesterday. The other project, he added, had an estimated GDV of RM500mil.

“We are now submitting plans and, if all goes well, we will launch them by early next year,” Lee said.

On why the second project had taken so long to get off the ground, he said: “The approval was given earlier, but there is a change of plans because of height restrictions.”

The parcel of land is located next to the palace reserve, which has restrictions on height.

Lee also said SelProp aimed to maintain its earnings for the current financial year after having posted a 35.8% growth in after-tax profit to RM89.6mil for the financial year ended Oct 31, 2006.

For the first quarter ended Jan 31, the company posted an after-tax profit of RM31.5mil, a three-fold increase over that in the previous corresponding period. However, Lee said it would be tough to rake in the additional RM50mil or so after-tax profit to meet its target.

The earnings increase in the first quarter was mainly due to a write-back of RM33.6mil for its investment in Australia-listed Multiplex Group Ltd, whose share price has since gone up.

On criticism that the company has not revalued its property assets since 1980, Lee said: “We have actually revalued the investment properties and have booked in a revaluation surplus of RM168mil, which is shown in our accounts (for the first quarter ended Jan 1, 2007).”