Monday, August 24, 2009

Maya Hotel Suffered Low Occupancy due to H1N1

Selangor Dredging Bhd, a company involved in property development, leasing and hotel operations, has three mixed development projects in the pipeline to be launched in its financial year ending March 31, 2010, with a total gross development value of between RM400 million and RM500 million.

Managing Director Teh Lip Kim said the projects, a 110 unit condominum near Newton Circus in Singapore and a condominium in SS 2, Petaling Jaya, and residential houses and apartments in Taman Melawati, Hulu Klang, both in phase two, would be launched early next year.

"The development near Newton Circus will be our second project in Singapore and our share of the GDV is about RM225 million.

"It is in the final stage of being launched probably end 2009 or in the first quarter of next year", she said, adding that the company was optimistic of its second project in the republic as the pick up rate had recovered.

Meanwhile, Selangor Dredging's maiden project in Singapore, a 22 unit apartment block in Mount Sophia was already 40 per cent sold.

She said 70 per cent of the 185 apartments to be built in SS2 was sold out, a tremendous endorsement for the company given the current market environment.

"We will conduct our projects prudently and be sensitive to the prevailing market scenario. At present, we are already seeing some improvement in the demand for properties.

"We have RM235 million in proceeds yet to accrue from the sale of remaining units in all these projects.

On another development, Teh said the company was in the midst of discussions with the authorities on resuming work on its luxurious housing project, dubbed "Damansara 21", which was halted following the tragic Bukit Antarabangsa landslide in December 2008.

"We still have a stop work order. The guideline for hillslope development is out and we have complied with it. We are still working very closely with the authorities as safety is our prime concern here.

"We have spent RM80 million on earth works so far. As the project is not launched, we are not adversely affected with the stop work," he elaborated.

The company also operates Hotel Maya Kuala Lumpur which suffered low occupancy since the outbreak of the H1N1 pandemic.

Group Chairman Eddy Chieng Ing said, " We get European, Australian, American and multinational clients, but many have cancelled bookings and stopped travelling since the pandemic.

"In the first quarter we registered a loss of RM280,000," he said.

Selangor Dredging recorded a net profit of RM17.2 million for the financial year ended March 31, 2009, down sharply from RM97.1 million chalked up in the same period in 2008.

Property development contributed 70 per cent of the group's revenue.

Source : Bernama
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