KUALA LUMPUR: OSK Group's property division OSK Property will be launching two new phases this quarter, amidst its strong financial performance. The launches involves phase 3B - 318 units of double storey terrace homes at the Iringan Bayu township in Seremban and Zone 2 of Precinct 3 comprising 32 single storey bungalows at Bandar Puteri Jaya in Sungai Petani, Kedah. The projects have a combined gross development value (GDV) of RM134.37mil in the last quarter of 2019.
The group's property segment recorded a solid 101% increase in pre-tax profit to RM135mil for 9M2019 compared to 9M2018. This is due to progress billings from existing projects that is Windmill, Luminari and TimurBay as these projects reached advanced construction progress with high take-up rate.
The results were further boosted by share of profits of associated companies amounting to RM29.38 mil for the period. The performance of the property segment will continue to be led by sales and progress billings from on-going projects. These include Ryan & Miho in Section 13, Petaling Jaya; Phase 1 - Pastura, Phase 2 - Astera and Phase 3A - Semaya at Iringan Bayu township in Seremban; You City III in Cheras; and Precinct 4 in Bandar Puteri Jaya in Sungai Petani, Kedah with GDV amounting to RM1.8 bil.
In addition, the division will complete two projects in the remaining year namely TimurBay and Luminari, which have achieved high take-up rates. The extension of the Home Ownership Campaign till the end of the year 2019 will continue to boost sales of the on-going projects.
The total unbilled sales of the group of RM1.69bil will form the bedrock for future profit contribution. As at Sept 30, the group has unbilled sales of RM1.69bil with minimal unsold completed stocks. OSK Holdings Bhd as a group currently has a land bank of 1,722 acres with an estimated effective GDV of RM10.60bil in Klang Valley, Sungai Petani, Butterworth, Kuantan, Seremban and Melbourne, Australia.
The group reported a healthy 3Q2019 pre-tax profit of RM116mil on the back of revenue of RM316mil; mainly contributed by the property and financial services segments.