By THE EDGE
Bandar Raya Developments Bhd (BRDB) expects its property arm to contribute significantly to profit from next year onwards. Progressive billings from ongoing projects in the Klang Valley, Johor and Pakistan as well as recurrent income from commercial properties should drive earnings in this division.
For its financial year ended December 2006, BRDB achieved a revenue of RM561.5 million, of which RM331.2 million was contributed by its listed manufacturing arm Mieco Chipboard Bhd. Net profit for the year was RM1.17 million.
BRDB chief executive officer Datuk Jagan Sabapathy said profit will only be realised next year for projects such as the Troika and One Menerung as construction only began this year.
“Last year was a slow year and our projects were only launched in the last two years so as we get into FY2008 and FY2009, we’ll start to recognise profit,” he said after the group’s AGM yesterday.
To date, the Troika — located near KLCC — and One Menerung in the company’s flagship Bukit Bandar Raya area in Bangsar have seen 65% and 75% sales respectively. Meanwhile the 6.08ha Capital Square mixed development project located in downtown Kuala Lumpur will see its commercial portion open in September.