OSK Property expects current projects to sustain 2015 earnings

An artist’s impression of Mirage by the lake condominiums and lake villas being developed by OSK Property in Cyberjaya.

PETALING JAYA: Ongoing residential and commercial projects for the remainder of the year will continue to help sustain OSK Property Holdings Bhd’s earnings.

This is despite the softer property market currently, said the company.

“All of the group’s projects are progressing well and are expected to contribute positively to the earnings of the group for the remainder of the year.

“The board is optimistic that the group will achieve satisfactory results for this year,” OSK Property said on Wednesday.

The group acknowledged that it expects the property market in general to continue to be challenging.

“Despite this, the group’s phase 3 (Eclipse Residence) of Pan’gaea project in Cyberjaya is almost sold out as take up rate reached 98%. Meanwhile, Emira Residence project in Shah Alam has achieved sales of 75%. The Group’s first mall – Atria Shopping Gallery in Damansara Jaya is completing and is expected to open to the public by end of May 2015.

In a report early this year, Jones Lang Wootton Malaysia executive director Malathi Thevendran was quoted as saying that retail space in Klang Valley is projected to grow from 55 million sq ft to 80 million sq ft by 2017.

An industry observer said there is still good demand for retail space, despite large, incoming supply.

“There is still demand, so long as it is meeting the right kind of demand,” he said, adding that potential mall managers should conduct proper research beforehand to determine if building a new mall would be feasible.

For its first quarter ended March 31, 2015, OSK Property’s net profit surged 111% to RM48.3mil from RM22.9mil registered in previous year’s corresponding quarter. Meanwhile, the revenue has seen a surge of 103% to RM284mil from RM139.7mil.

“The higher profit in the first quarter is mainly due to the disposal of freehold land to PR1MA Corporation Malaysia (PR1MA) and higher level of construction work carried out during the current period for on-going projects such as Pan’gaea in Cyberjaya, Mirage Residence in Kuala Lumpur, Atria SOFO suites in Damansara Jaya and Bandar Puteri Jaya in Sungai Petani,” said the company.

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