The local development market is negatively affected by the various MCOs, says Iskandar Waterfront

Iskandar Waterfront City (IWC) Bhd expects the current financial year to be extremely challenging for the group in view of the unprecedented changes in the socio-economic largely caused by the Covid-19 pandemic.

IWC, formerly known as Tebrau Teguh Bhd said the local development market is also negatively being affected given the continuing uncertainty and the various Movement Control Order (MCO) implemented by the government.

The group will continue to monitor both global and local developments closely and remain vigilant in mitigating any potential impacts to the group’s business, it said in a filing with Bursa Malaysia yesterday.

IWC, whose major shareholder is Tan Sri Lim Kang Hoo is involved in property development, property investment, property management, and construction.

The group has two ongoing development projects namely Botanika and Danga Sutera, strategically located in the matured Skudai Corridor.

Botanika comprises three towers and villas. The first tower with 264 condominium units had been completed in March 2019 and handed over to purchasers in the same year.

The second tower of Botanika is under construction and is expected to be completed by the end of this year.

It was reported that the construction of the third tower and the villas have been deferred until the market for high-rise development improves.

Danga Sutera is a 67-acre premium development comprising terraced homes, semi-detached units and bungalows.

Phase 2 is currently in development stage and it consists of 34 units of semi-detached homes. Phase 3, comprising 84 semi-detached units is starting soon.

IWC said in the Bursa filing that it will maintain a prudent approach and adapt its plans, strategies, product designs, and timing for any new product launches.

For the first quarter ended March 31, 2021, IWC recorded revenue of RM7.54 million which was RM11.6 million or 60.7 per cent lower as compared to RM19.2 million posted in the same quarter in the preceding year.

IWC said despite a drop in revenue, the group posted a lower pre-tax loss of RM5.8 million for the quarter under review as compared to a loss of RM7.3 million for the corresponding quarter ended March 31, 2020.

“The lower revenue was due to lower level of work and billings achieved in the current quarter whereas the higher pre-tax loss in the corresponding quarter ended March 31, 2020, was mainly due to provision of Liquidated Ascertained Damages (LAD) recorded in that period,” it said.

Revenue from the group’s property development activities in the quarter ended March 31, 2021, fell by RM12 million to RM6.3 million as compared to RM18.4 million in the preceding quarter ended March 31, 2020.

A pre-tax loss of RM2.4 million was reported for the segment in the quarter under review as compared to a pre-tax loss of RM3 million in the preceding quarter due to a lower level of work and progress billings achieved.

Source: NST