Property developer Sunrise Bhd will be launching 12 new projects with a combined gross development value (GDV) of about RM2.5bil over the next 32 months, said managing director Datuk Michael Yam.

Speaking to reporters after the company's AGM and EGM in Kuala Lumpur yesterday, Yam said that six of the projects were slated for launch in the current financial year ending June 2005 and the other six in the following year.

''We'll be launching four residential projects and two mixed property/commercial development projects with GDV of about RM1bil this financial year. For the year ending June 2006, we'll be launching another six projects, mostly residential, with GDV of RM1.5bil to RM1.6bil,'' Yam said.

Datuk Michael Yam.

The projects to be launched would sustain Sunrise for more than 10 years, he added.

The company currently has a landbank of 1,000 acres, of which 10% is located in the upmarket Mont Kiara area of Selangor.

''We've bought close to 50 acres in Mont Kiara alone in the past six months. Mont Kiara is our stronghold and it is only natural that we extend our landbank there. Nonetheless, Sunrise is not just Mont Kiara,'' chairman Tong Kooi Ong said.

He said the company's aggressive project launches and land acquisitions indicated how bullish it was on the country's property market.

''The property market is expected to continue to do well over the next few years. There is a lot of liquidity in the economy,'' he said.

As such, he said, Sunrise would continue to focus on the Malaysian property scene. He described the company's overseas expansion as ''minor distractions''.

''Overseas projects account for less than 10% of total company profits. We're not actively looking for overseas ventures but we have strong partners overseas that are on the lookout and bring to the table good deals,'' Yam said.

Sunrise is currently involved in two projects overseas in London and Sydney.

The London project, Grand Field Mills, is a venture with British and South African partners.

''We currently have only an 8% interest in the venture and we're negotiating to increase our stake to 17%. If we're able to achieve that, we'll be able to generate £2mil in pre-tax profit from that project over two to three years. Otherwise, with 8%, it would be £800,000,'' Yam said.

Tong said that going forward Sunrise would focus more on product differentiation and branding.

The company spends about 0.5% of its sales on advertising and promotions, or about RM1mil–RM1.5mil a year.

''As project launches get more intense, we probably would have to spend more,'' he said.

Meanwhile, Sunrise released its first-quarter results yesterday evening. The results for the quarter ended Sept 30 showed its net profit had tripled to RM22mil from RM7.5mil in the corresponding quarter last year. Earnings per share for the period amounted to five sen compared with four sen previously.

The group's earnings came mainly from progress billings from Kiara Designer Suites and phase one of Solaris shop offices.

The company's launches in the Mont Kiara area continued to be robust. Sunrise said that Kiara Designer Suites, the company's first serviced apartment project, had achieved 90% sales after marketing began in June.

In addition, sales of Solaris' phase one reached 96% after a soft launch in May. Solaris is a lifestyle office development.

SOurce : The Star  29/10/2004