From a low cost housing scheme in Selayang to a diverse range of properties all over Klang Valley, Glomac Berhad has come a long way in the real estate industry

Established in 1988, Glomac Berhad was founded by two entrepreneurs – Dato’ FD Mansor and Datuk Richard Fong, who are now the current group executive chairman and group executive vice chairman. The company started off with a low cost housing scheme known as Taman Jasa Utama in Selayang, Selangor.

“From then, we did other things as well, but we didn’t have a focus at that time. We did many things including a restaurant, batik factory and taxis,” says group managing director, Dato’ FD Iskandar.

According to FD Iskandar, by the time he joined the group in mid 1991, the company had grown to be a full-fledged developer. “Today, the company is involved in all aspects of real estate business including property development, construction, property management, carpark management and property investment,” he says.

In 1996, Glomac completed its very first business park, Kelana Business Centre in Petaling Jaya, Selangor. “We were one of the first to do business parks and since then, we have developed about nine or 10 more business parks,” says FD Iskandar.

The concept of business parks was conceived when the management saw a need from consumers who could not afford tower blocks, but did not want to operate from shoplots or shop offices. “So, we upgraded the typical shop house into six- to eight-storey buildings with better façade, and it became very popular,” he says, adding the concept has been well received particularly by companies wanting to have their own business premises but did not want to spend too much on a physical building.

Some of Glomac’s other business parks include Glomac Business Centre, Kelana Centre Point and Dataran Prima all located in Petaling Jaya, and Worldwide Business Park in Shah Alam.

Surviving the Asian financial crisis

At the end of 1996, the company was poised for the next step. “In 1997, we were ready to go for listing. At that time, the SC’s (Securities Commission) requirement for listing was to have 1,000 acres of landbank. So, we started acquisitions and joint ventures,” says FD Iskandar.

Its first joint venture was a 500 acre project in Sungai Buloh and they went on to acquire 455 acres in Ulu Tiram, Johor. However, the company was better known for its business parks and centres, says FD Iskandar, and its niche has remained in the commercial segment.

In 1997, the Asian financial crisis crippled many businesses and Glomac was not spared.

“During the crisis, we had no sale, bankers weren’t lending money, and we were quite in the doldrums. Fortunately, we were quite a small outfit at that time, and we managed to turn around, to adjust our product offerings to what the market could take at that time,” he says.

It was then that they took their plans to build resort homes – such as bungalows, semi-Ds and townhouses – and changed them into medium cost homes to capture the market. It also bought an additional 200 acres of land adjacent to its 500 acres in Sungai Buloh to build more medium cost homes. Since then, the company’s strength grew, and it was listed on the Main Board of Bursa Malaysia Securities Berhad in June 2000.

Building homes of great value

“Since our listing, we became the market leaders in innovative design, giving value for money. We believed in providing proper maintenance, and we prefer to handle maintenance for at least the first two years of a new development,” says FD Iskandar.

Three years later, the company began acquiring pockets of land around Klang Valley, and one of its launches in 2003 was Aman Suria, a 60-acre freehold development in Petaling Jaya. The RM300 million project sold out very quickly, and customers have been enjoying great capital appreciation.

“We sold terraces for RM488,000, semi-Ds for RM888,000 and bungalows for RM1.3 million. Today, the value of the terraces are about RM800,000. For the semi-Ds and bungalows, the current value stand at RM1.6 to RM2 million and RM2.5 to RM3.5 million respectively,” says FD Iskandar.

With capital appreciation of more than double its first selling price, Aman Suria has turned into a most sought after address, known for its security and maintenance.

Although the company had gone on to develop several more projects of the same concept – gated and guarded communities complemented by clubhouse facilities – the company also made sure to have a diverse range of properties.

“We learned not to put all our eggs into one basket,” says FD Iskandar, adding that the company is involved in all types of properties including luxury residential, townships, commercial and business parks.

Celebrating twenty-one years of real estate

Last year, the company bought three to four pieces of new land at Glomac Damansara, a 6.8 acre freehold commercial project comprising one office tower, 10 office suites with a neighbourhood mall conveniently located below, two tower blocks of serviced apartments and more, with a gross development value of RM850 million. It also turned its 3.5 acre Kelana Seafood Centre into a RM275 million commercial project to be launched soon.

Over at Mutiara Damansara, the launch of a commercial complex comprising tower blocks and office suites are in planning stage, while in Cyberjaya, the company is planning to launch a commercial project comprising shop offices worth approximately RM250 million next month.

Although the current financial crisis has affected sales quite badly, with approximately RM700 million in unbilled sales last year, FD Iskandar remains optimistic.

“We should be okay for another two years with what we have. We are still launching, but not as fast as last year. We need to look for the right timing. Our township sales however, remain strong,” he says, adding that the most important thing is to have the right kind of property in the right kind of location, backed by a good reputation.

On its overseas ventures, he revealed that the company is very seriously considering opportunities in India and Vietnam. “Other good markets include Indonesia and Jakarta where there is vast domestic market. We are definitely interested in these places,” he adds.

This year, Glomac celebrates its 21st anniversary, by launching a two-month campaign known as 21 Rewards.