In a bid to enhance its property business, Farlim Group (Malaysia) Bhd is currently in talks with various parties to acquire land in Perak, Penang, Selangor and Kuala Lumpur.
The firm is still in the midst of discussion and is looking forward to conclude some of the land acquisition by the end of this year. Currently, the firm is undertaking a wait and see approach as land prices are still quite high. “We are waiting for the right price.”
With a cash hoard of more than RM100 million, the Penang-based firm currently has 310.09 acres of landbank in Selangor, Penang, Malacca, Terengganu and Perak. Of these, 302.57 acres are still undeveloped.
The group completed its acquisition of 92.74 acres site in Bidor, Perak in 2015. This effectively marked the firm’s maiden venture into the state.
Currently, the firm is executing a major business park project in Penang which is already nearing completion, as well as other ongoing projects that include shophouses in Penang, Bukit Cerakah (Shah Alam) and Kajang.
For this year, the group plans to kick start a residential project in Perak, which includes affordable housing priced between RM200,000 and RM500,000.
In terms of financial performance, the firm is expecting positive results for the financial year ending 31 December 2016 (FY2016). Current ongoing projects are expected to generate a good turnover, as well as profit for Farlim.
Farlim registered a net profit of RM3.91 million in Q1 2016, an improvement from a net loss of RM990,000 over the same period last year, mainly from the progress billings of existing commercial projects. Revenue also increased to RM15.99 million from RM316,000 last year.
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email firstname.lastname@example.org