Thinkproperty Blog

Sunway City Berhad (SunCity) announced a revenue of RM283 million and profit before tax of RM87 million for the first quarter ending 31 March 2010 (FY2010).

A summary of key performance highlights and its comparison with the corresponding quarter last calendar year (3Q FY 2009) is provided below. The comparison is made with the 3Q FY 2009 due to the change in financial year in 2009.

During the financial quarter ended 31 March 2010, SunCity continued to make headways in pursuing its growth strategy of unlocking its asset values and injecting them into a REIT. The shareholders of SunCity have approved the relevant resolutions in relation to the Proposed Sunway REIT during the EGM held on 27 May 2010.

A total of 8 assets, collectively valued at RM3,729 million, will be injected into the Sunway REIT, making it the largest REIT in Malaysia. Upon the completion of the listing of the REIT, SunCity will own approximately 35% of the issued units subject to the over-allotment option being fully exercised.

The proceeds of the REIT will be used for the repayment of borrowings, business expansion including land acquisitions and working capital.

SunCity’s positive performance is attributed to successful efforts by both the Group’s Property Development and Property Investment divisions.

In terms of Property Development, progressive billings of Villa Manja in Sunway SPK Damansara, as well as the successful completion of Sunway Challis Damansara and shop-offices in Sunway Giza, both located in Sunway Damansara, Petaling Jaya contributed positively to the results.

SunCity’s Managing Director, Property Development - Malaysia, Ho Hon Sang, said ‘We are pleased that our efforts have paid off and contributed to our first quarter results. In particular, this continuous positive track record reflects the public’s confidence in our projects.’

He added that the optimistic responses towards the Groupâ's projects were a result of SunCity's contemporary designs which incorporated the ‘Lifestyles of Health & Sustainability’ (‘LOHAS’) philosophy. The GBI certification awarded to the Sunway SPK 3 Harmoni project is also a solid testament to our expertise in developing green and eco-friendly projects.

SunCity’s Property Development division's upcoming launches include Sunway Rymba Hills, the first development with 3-storey forest villas in Petaling Jaya with a 6.5 acre private forest park and A’Marine, a luxury lakeside condominium located in Sunway South Quay, Bandar Sunway. Both launches have received positive responses in the first week of its launch.

SunCity Managing Director, Property Development - International, Ngian Siew Siong, said, 'The International division has also made good progress with the recent launch of Sunway Guanghao, a mixed high-rise development in Jiangyin New Harbour City in China. This development has an estimated gross development value of RM492 million. Jiangyin holds great potential as it is recognized as one of China’s most developed cities due to rapid economic growth.’

This launch reflects SunCity's commitment to grow the International division by tapping into the promising China market. It also follows the recent signing of the collaboration agreement with master developer, Sino-Singapore Tianjin Eco-City Investment and Development Co., Ltd. (SSTEC) on April 30, 2010. This signing was for the development of Tianjin Eco-City, a RM5 billion gross development value project in Tianjin Binhai New Area.

For the Property Investment division, SunCity's flagship Sunway Pyramid Shopping Mall continued to be the top earner for the Group. SunCity's Managing Director, Property Investment, Ngeow Voon Yean, said ‘This is due to strong patronage of local and foreign visitors and resilient occupancy rates. Our award-wining themed shopping mall which is fully tenanted strives to deliver unique experiences through its variegated tenant mix, events and promotions’.

SunCity's hospitality segment saw an improvement in its revenue for the 1st quarter of the year. Ngeow said, 'Occupancy of Sunway Resort Hotel & Spa has increased to 70% with travelers starting to travel again due to economic recovery and reduced severity of AH1N1 effect. The hotel underwent a major room refurbishment exercise which allowed us to enjoy an increase in average room rates. We also saw higher revenue generated from the Meeting, Incentives, Conventions and Exhibitions (MICE) segment and the hotel’s food & beverages division.

Moving ahead, plans are underway to develop a 25-storey and 30-storey office towers within the acclaimed Sunway Integrated Resort City.

With the commitment to further drive innovative customer service and the upward growth trend in the property sector with the recent signs of returning economic recovery, the Board of Directors is of the view that the performance for FY2010 will be good.

About Sunway City Berhad

Sunway City Berhad (SunCity), a member of the Sunway Group, is one of Malaysia's premier property developers. The company's business activities are diversified through its Property Development and Property Investment Divisions.

The multi-award winning Sunway City Brand has been recognised by both local and overseas association and positions the Company as having the best of both worlds - a high growth property development segment and a stable base of income from high yielding property investments.

For more information, kindly visit:
http://www.sunwaycity.com/corporate/suncityir.htm