KUALA LUMPUR (Sept 3): SHL Consolidated Bhd is unfazed by a slowdown in the property market, going ahead with new build-then-sell (BTS) launches with focus on affordable homes and landed properties.
 
SHL executive editor Datuk Yap Chong Lee said the property developer is targeting new property sales of RM250 million for the current financial year ending March 31, 2016(FY16). In FY15, the group recorded RM215.38 million in sales.
 
Yap said the group’s confidence stems from a 95% take up rate for its affordable housing project in Shah Alam, Selangor in April this year.  

The group  plans to launch a new landed project dubbed “Tecoma” within its Goodview Heights township development in Bandar Sungai Long South, Selangor in two months, which will have a gross development value (GDV) of RM250 million.

Despite the property market going through a tough cycle now, Yap is of the view that SHL is moving in the right direction with the BTS strategy for affordable homes and landed properties.

Citing developed countries such as Australia and Japan, Yap said the direction going forward is towards the BTS model. Under the BTS system, a developer will collect 10% of selling price as deposit and the rest will be collected after completion of the house.
 
“The BTS systen deters speculation because we (developers) are going to start building the house  six to seven months after a purchaser signs the (sale and purchase) contract. It is also very good for us (developers) as we will ensure that the completion time is always on target,” Yap told reporters after the group’s annual general meeting (AGM) today.

Earlier at the AGM, SHL shareholders approved a final dividend of 8 sen per share for FY15, payable on Sept 30.
 
SHL (fundamental: 3; valuation: 2.4)  shares closed up 1% or 3 sen at RM3.03 today, bringing a market capitalisation of RM728.79 million.
 
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)