6 days ago
- Business
- New Straits Times
OSK, EPF JV in Melbourne sees strong sales
KUALA LUMPUR: OSK Holdings Bhd reported a 67 per cent take-up rate for Phase 2 of BLVD, a high-rise residential tower in Melbourne Square (MSQ), developed in partnership with the Employees Provident Fund (EPF).
Sales efforts for Phase 1 are ongoing, while profits from Phase 2 are expected upon handover in early 2027.
OSK, in its corporate results statement, said its property development division continues to be a key growth driver, with upcoming launches progressing as planned. The group remains focused on hitting construction milestones and controlling costs to ensure timely delivery and sustained profitability.
For the first quarter ended March 31, 2025 (Q1 2025), OSK posted a 9 per cent year-on-year increase in revenue to RM400.6 million. Pre-tax profit remained steady at RM140 million, supported by its diversified business portfolio.
Group executive chairman Tan Sri Ong Leong Huat noted that the group's diversified model has enabled it to sustain earnings despite ongoing economic challenges.
The property segment contributed RM188.5 million in revenue and RM31.2 million in pre-tax profit, down from RM204.7 million and RM36.9 million, respectively, in Q1 2024, mainly due to the absence of a high-margin project.
As of March 31, 2025, unbilled sales stood at RM1.2 billion, reflecting strong demand and a low level of unsold completed units. OSK's land landbank totals 2,083 acres, with an estimated gross development value (GDV) of RM17.7 billion across key locations in the Klang Valley, Kedah, Penang, Negeri Sembilan, and Melbourne.
The property investment division continues to deliver consistent income from its office and retail leasing portfolio.
Meanwhile, the hospitality segment posted RM23.4 million in revenue for Q1 2025, with a pre-tax loss of RM1.5 million, compared to RM24 million in revenue and a RM0.7 million loss a year earlier. The wider loss was attributed to refurbishment works at Swiss-Garden Beach Resort Kuantan, which temporarily impacted F&B and event revenues.
The Phase 2 refurbishment is expected to be completed in Q2 2025, aimed at enhancing guest experiences and expanding event capabilities.
Recently rebranded hotels, DoubleTree by Hilton Damai Laut Resort and Holiday Inn Express & Suites Johor Bahru, are also expected to strengthen their market positions in the hospitality sector.
Ong noted that Malaysia's tourism outlook is upbeat, supported by extended visa-free travel for Chinese and Indian tourists until December 2026, which is expected to drive growth in both leisure and business travel.
"With the strength of our diversified portfolio, we are confident of delivering satisfactory results for the remainder of 2025," he said.
