SunCity to double property sales

By BUSINESS TIMES

PROPERTY developer Sunway City Bhd (SunCity) expects sales to more than double to RM1.35 billion in fiscal year 2008, analysts who attended a company briefing said yesterday.

This will be driven by new launches and demand from foreign buyers who can buy properties more easily now.

SunCity posted sales of RM1.55 billion for the 18 months ended June 30 2006. The longer period in 2006 was because SunCity changed its year-end to June from December.

Between 2001 and 2004, SunCity, 44 per cent held by Tan Sri Jeffrey Cheah, had average sales of RM774 million a year.

Meanwhile, UBS Investment Research said in a report that SunCity could receive RM806 million from its planned real estate investment trust.

UBS values SunCity at RM6.90. SunCity shares closed 0.4 per cent down to RM4.98 yesterday.

In the report, UBS speculated that SunCity would sell condominiums worth RM200 million at the Sunway South Quay lakeside development township to Middle Eastern partners this month. The deal could be similar to the one inked with CI Korea Co Ltd for an en bloc sale of RM200 million worth of properties early this year.

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