Sime UEP sees profit growth of 15%

By THE STAR

SUBANG JAYA: Sime UEP Properties Bhd, the property division of Sime Darby Bhd, expects 15% growth in pre-tax profit for the year ending June 30, 2007 (FY07) from RM140mil in FY06 on strong response to its condominium projects.

The property group made its foray into the high-end condominium market only in March and is seeing brisk sales of its units.

“The Ara Hill condominium project will be the engine of growth this year,” Sime Darby divisional director (property) Jauhari Ahmad said after the Putra Point keys handing-over ceremony yesterday.

He said Sime UEP was previously bent on developing medium-cost landed housing projects like terrace houses for the mass market that was more likely to be affected by recession and market slowdown. Now, it is looking at developing a wider range of products, especially in the high-end segment.

“The higher-end projects will help us reach out to a bigger market,” he added.

Located at Ara Damansara, the 400-unit 16-storey Ara Hill has been 70% sold.

Next, Jauhari said, would be the launching of USJ Heights – a 60-acre gated housing estate comprising link-houses and bungalows – in July.

He said another growth factor included the group’s decentralisation of its sales force via the setting up of sales galleries that branched out from relevant sales offices in various strategic locations.

“Our sales teams now are all over the place,” he added.

In a related development, Sime UEP, the developer of Subang Jaya and UEP Subang Jaya or USJ, had to date completed half of the 727ha Putra Heights project, which was due for full completion in 2013, Jauhari said.

“We have built more than 6,400 units of the total 11,500 comprising mixed residential and commercial development for the Putra Heights township,” he said.

He said upon completion in 2013, the township would have, among other things, a second interchange, a hypermarket and a shopping mall.

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