CAHYA MATA SARAWAK ANNUAL REPORT 2016

A N N U A L R E P O R T 2 0 1 6 Section 03 P E R F O RMA N C E 2 0 1 6 23 Cahya Mata Sarawak Berhad PROPERTY DEVELOPMENT DIVISION CMS’ PROPERTY DEVELOPMENT DIVISION IS THE CUSTODIAN OF TWO LAND BANKS IN KUCHING, NAMELY THE 3,911-ACRE LAND BANK IN PETRA JAYA, CALLED BANDAR SAMARIANG, AND THE ISTHMUS, THE 246-ACRE LAND BANK AT MUARA TEBAS VESTED WITH CMS LAND SDN BHD, AS WELL AS SOME OTHER SMALLER PARCELS. Bandar Samariang is being developed by Projek Bandar Samariang Sdn Bhd, whilst The Isthmus is under CMS Land Sdn Bhd. CMS Property Development Sdn Bhd provides project management services to companies within the Property Division whilst also undertaking the developments in the Division’s other land banks. The sizeable land banks held by the Division provide sustainable long-term growth in tandem with the steadily urbanising population and the needs of Kuching city itself. For the year under review, the Property Development Division posted revenue of RM104.66 million (FY 2015: RM90.04 million) and a PBT of RM23.51 million (FY 2015: RM19.85 million) amidst a softening domestic market. BANDAR SAMARIANG Situated approximately 7km from the Kuching city centre, Bandar Samariang is within easy reach of the resort areas of Damai and Santubong. This integrated Township, which is home to more than 25,000 residents, encompasses a variety of residential homes, a commercial centre and schools, with the scenic Santubong Mountain as its backdrop. It has an estimated gross development value (GDV) of RM497.00 million for development between 2015 and 2021. The Township continues to attract interest on the back of improved road access, an increase in critical mass, the affordability of its properties and CMS’ superior build quality. The Federal Administrative Centre road, linking Bandar Samariang to Matang continues to provide a positive pull effect for the residential and commercial properties from a larger population base. Bearing this in mind, the Division has sought planning approval for 154 units of affordable apartments with amenities. At the end of 2016, a total of 4,412 residential units and 160 shop-houses had been developed by Projek Bandar Samariang (PBS) under Phase 1 of Bandar Samariang covering some 600 acres. The Township also saw the opening of the first Mydin Hypermarket in Kuching in August 2016. With the Mydin Hypermarket in place, PBS’ upcoming shop-house development continues to draw great interest from commercial property investors and businesses. Currently, works on the remaining portion of Phase 1 comprising an additional 47 residential units and 20 shop-houses are underway. In the pipeline are plans to launch another 366 residential units and 17 shop-houses. Under Phase 2, PBS will seek planning approval for another 754 units of affordably priced houses and 92 shop-houses on a 350-acre site. REVENUE PROFIT BEFORE TAX FY2016 RM 104.66 million FY2016 RM 23.51 million MANAGement DISCUSSION AND ANALYSIS