Glomac ... Oct09

A 6.12% block of shares in property developer Glomac, believed to be treasury shares, were traded off-market yesterday at RM1.098 apiece.

The block comprising 18.2 million shares was believed to have been taken up by up to four parties.

The major shareholders of Glomac are group executive chairman Tan Sri FD Mansor who holds a 24.12% stake, group executive vice-chairman Datuk Richard Fong (17.75%), group managing director Datuk Fateh Iskandar Mohamed Mansor (10.82%) and investor Brahmal Vasudevan (6.06%).
Fateh

The shares disposed of were likely to be treasury shares and that buyers included foreign funds, adding that there might be three or more parties involved in the deal.

Glomac was finalising the selling price and building plans for the enbloc sale of the 25-storey corporate tower in Glomac Damansara, adding that the estimated selling price was RM160-RM180 million with the transaction expected to be concluded next month (Oct 2009).
The company was currently in preliminary discussion with a few parties for the enbloc sale of a 16-storey office block and boutique retail and offices in Glomac Damansara.

These enbloc sales are positive to the company as it would reduce sales risk of the whole project as well as improve investors’ confidence on the project which will eventually provide better bargaining power for the company’s service apartments to be launched by end-2009 or early 2010,” it pointed out.

Glomac’s net profit for the first quarter ended July 31, 2009 rose 6.9% to RM8.34 million from RM7.80 million a year ago mainly due to recognition of fair value gain of RM4.91 million for Block B Glomac Business Centre and contribution from Glomac Tower.

The company’s revenue fell 25.9% to RM58.98 million from RM79.54 million in the same quarter last year due to the completion of Suria Stonor. Basic earnings per share for the quarter increased to 2.99 sen from 2.73 sen previously.

Glomac’s financial performance in the financial year 2010 would be supported by substantial unbilled sales of RM333 million as at end-July 2009 and new sales on recently launched projects.

The first phase of its new flagship development Glomac Damansara comprising 5-storey and 8-storey shop offices with a total gross development value (GDV) of RM53 million achieved a take-up rate of 70% over the initial six month launch period.

Phase one of Glomac Cyberjaya with a GDV of RM64 million achieved 90% sales following its launch two months ago, adding that it planned to launch the second phase comprising 24 units of shop offices with a GDV of RM41 million by next month.

Going forward … It is looking to launch at least three new developments for the financial year ending April 30 2010, with a combined gross development value (GDV) of over RM550 million.

It plans to launch the second phase of its RM180 million Glomac Cyberjaya project by the middle of next month. The second phase comprises 24 units of shop offices with a GDV of RM50 million. Glomac bought 8.1 acres of land in Cyberjaya in 2008 and was the first to offer three-and-half-storey shop offices there.

Also in the pipeline is a commercial project on 1.3 acre freehold land in Mutiara Damansara, Selangor, which has an estimated GDV of RM250 million. The development, surrounded by the commercial hubs of Ikea, Tesco and The Curve, will encompass retail spaces, office suites and a corporate office.

Glomas will also launch the second phase of the Plaza Kelana Jaya, a land that formerly housed the famous Kelana Seafood Centre.

Glomac aims to launch the fourth phase of the Plaza Kelana Centre with a GDV of some RM250 million. The development will be on a 3.2 acre freehold land that includes an office block, a neighbourhood shopping mall and office suites.

Also in the plans are the launch of another phase at its Saujana Utama township in Sg Buloh, Selangor, in November.

Glomac is close to acquiring at least two new landbanks before the year-end.

The company is talking to several parties to acquire land namely in the Klang Valley for commercial development. The new land will be small in size, but have a high GDV and fast turnaround of about four to five years.

Related:-
GLOMAC ... July 09
Glomac ... Nov 2008