DAMANSARA REALTY WINS COURT BATTLE OVER INTEREST AWARD
DAMANSARA REALTY WINS COURT BATTLE OVER INTEREST AWARD
KUALA LUMPUR, 13 March 2019: The Federal Court today has decided in favour of Damansara Realty Berhad (DBhd) against Bungsar Hill Holdings Sdn Bhd’s (BHH) appeal for DBhd to pay interest to BHH amounting to approximately RM8 million.
The land which belongs to BHH was leased to DBhd and a compulsory acquisition of the land was carried out by the government in 2000 for the construction of the SPRINT Expressway. The dispute for compensation sum, between DBhd and BHH, originally started in 2001 and was concluded in BHH’s favour in 2013. Upon conclusion of the case, BHH had further claimed for DBhd to pay interest on the land acquisition compensation sum.
The Federal Court, in delivering their judgment, found that only late payment charges are recognized under the Land Acquisition Act 1960 (LAA) and imposition of interest is not in tandem with the spirit and intention of the LAA.
“We are extremely pleased with this decision and we can now focus in building our organic growth through our core businesses” said DBhd’s Group Managing Director, Ts. Brian Iskandar Zulkarim.
DBhd posted its second straight year of profit predominantly through its Integrated Facilities Management segment and aims to expand its Project Management & Consultancy and its Property & Land Development segments by leveraging on each other’s strengths on specialised development projects such as hospital planning, development and construction.
*Ts. stands for the title of ‘Certified Professional Technologist’ awarded by the Malaysia Board of Technologists (MBOT).
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DAMANSARA REALTY EYEING FUTURE DEVELOPMENT OPPORTUNITIES
DAMANSARA REALTY EYEING FUTURE DEVELOPMENT OPPORTUNITIES
AFTER ENDING PRECINCT 5 PPA1M PROJECT
KUALA LUMPUR, 26 February 2019: Damansara Realty Berhad (DBhd) has announced the termination of the Development Agreement (DA) with Perbadanan Putrajaya (PJC) for affordable civil servant housing project (PPA1M) and related commercial components in Putrajaya.
In a filing with Bursa Malaysia today, DBhd said PJC had decided to terminate the DA with its subsidiary Damansara Realty (Johor) Sdn Bhd (DRJ) on the basis of national and public interests, in line with the government’s aspiration to unify the development of affordable homes under Ministry of Housing and Local Government (KPKT).
“DBhd respects this decision by PJC and remains optimistic in our plans regarding any development or collaboration with both government and private entities. We support the Government’s direction in the importance of promoting strategic operational cohesion at the national level,” said DBhd Group Managing Director, Ts. Brian Iskandar Zulkarim.
“Other than the costs incurred since we started the project, which is claimable, the decision would not have any significant impact on the group’s earnings or net assets per share,” added Ts. Brian.
The Federal Government recently formed a National Affordable Housing Council, grouping five public housing agencies together, including PPA1M which oversees affordable housing for civil servants.
Meanwhile, DBhd is turning its focus on specialised development projects such as hospital planning, development and construction, combining the strategic strengths of its property development and project management and consultancy (PMC) segments.
“We’ve achieved a second straight year of profit and ensured our core businesses continue to yield stable recurring income,” said Ts. Brian.
DBhd is continuing to streamline its stable of businesses as it focuses on expanding in higher margin and higher growth businesses.
*Ts. stands for the title of ‘Certified Professional Technologist’ awarded by the Malaysia Board of Technologists (MBOT).
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SECOND STRAIGHT YEAR OF PROFIT FOR DAMANSARA REALTY
SECOND STRAIGHT YEAR OF PROFIT FOR DAMANSARA REALTY
KUALA LUMPUR, 20 February 2019: Damansara Realty Berhad (DBhd or the Group) posted a 9.4 percent jump in net profit to RM19.5 million for the year ended 31 December 2018, driven largely by strong organic growth in its Integrated Facilities Management (IFM) segment.
DBhd’s revenue for the year jumped 21.9 percent to RM304.13 million from RM249.48 million in the previous year. Its pre-tax profit rose 32.9 percent to RM25.41 million and operating profit rising 29 percent to RM26.67 million.
After adjusting for a one-off expenses incurred for corporate exercises last year, its operational profit jumped more than 300 percent to RM20.67 million in 2018, against RM6.57 million in 2017. DBhd reported non-recurring other income of RM27.21 million in 2017, largely arising from its Johor property development projects, compared to RM5.99 million in 2018.
“The strong rise in our recurring income is an attestation of our own ability to generate better quality earnings built on healthy organic growth, as we continue to shift our business focus to high-growth markets and higher-margin projects,” said DBhd’s Group Managing Director, Ts. Brian Iskandar Zulkarim.
“Having a range of recurring income streams have buffered the impact of the soft property market, with IFM being the main driver of sustainable profit and organic growth,” he added.
“Moving forward, we will be focusing on expanding our IFM capabilities in technology and innovation, to enable our customers to improve efficiency, productivity and automation while managing rising manpower costs,” said Ts. Brian.
DBhd has been systematically streamlining its operations to optimise resources and capital to generate better margins and returns, exiting niche markets and low margin operations. At the same time, it is expanding its Project Management & Consultancy (PMC) segment by pairing it with the Property & Land Development (PLD) segment to target specialised projects such as hospital and medical centre development.
“Combining strengths with PLD to expand our consultancy services beyond the healthcare sector and broaden our specialty in the areas of construction and hospital management will diversify income streams as well as support the Group’s property projects,” he added.
For the fourth Individual quarter ended 31 December 2018, DBhd saw a net profit of RM14.88 million on revenue of RM82.3 million.
*Ts. stands for the title of ‘Certified Professional Technologist’ awarded by the Malaysia Board of Technologists (MBOT).
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