Gromutual undertaking RM376.2m worth of projects

PETALING JAYA: Johor-based property developer Gromutual Bhd is undertaking ongoing projects with a total gross development value (GDV) of RM376.2 million in Malacca and Johor.
The group said in a statement yesterday that the ongoing projects comprise residential and commercial properties.
Its deputy managing director Chew Kwee Hiok said the overall property market is rather challenging in 2014, given the labour shortage and stricter mortgage regulations by banks.
"Nonetheless, we recognise that demand is still strong for affordable and mid-range properties in choice locations. To capture this demand, we launched three projects in the first half of the financial year ending Dec 31, 2014 (FY14), comprising mixed residential and commercial developments in the two states. We will continue to monitor the consumer pulse and be selective with introducing future developments," she added.
Despite the tougher property outlook, its project named Austin 18 in Iskandar Malaysia achieved 50% take-up rate. The project comprises 319 units of Versatile Business Suites within the mature enclave of Mount Austin in Johor Baru.
"We are making good progress with Austin 18 and have started the piling works early this year. The project is targeting commencement of building works in June 2014. We are optimistic that the fresh and modern concept, as well as its affordability, will continue to attract buyers," said Chew.
The group declared an interim single tier dividend of 2% per share in FY13, amounting to RM3.76 million. The dividend was distributed on Oct 10, 2013.
At its AGM yesterday, shareholders approved the payment of a final single tier dividend of 2% per share, which will be paid on June 26, 2014 bringing the total dividend payout in respect of FY13 to RM7.52 million, constituting 28% of the group's net profit in FY13.