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- The property developer first announced its intention to venture into the data centre business in 2020, earmarking land in Cyberjaya as part of its strategy to diversify beyond its core property operations.
KUALA LUMPUR (Oct 23): Glomac Bhd (KL:GLOMAC) has deferred its plan to venture into the data centre segment as the group has yet to secure a confirmed tenant to lease its land, said group managing director and CEO Datuk Seri FD Iskandar Mohamed Mansor. (pictured)
The property developer first announced its intention to venture into the data centre business in 2020, earmarking land in Cyberjaya as part of its strategy to diversify beyond its core property operations.
“The plan to venture into a data centre is still on the cards for the company. We had allocated about one or two parcels of land for that,” FD Iskandar told reporters after the company’s annual general meeting on Thursday.
He added that developing data centres requires significant capital investment and must be approached prudently.
“We have to be prudent. We must ensure that we already have a confirmed customer before starting construction. Even for companies that have signed with customers, some of those customers have since pulled back,” he said.
“Johor has become a hub for data centres in Southeast Asia. However, there are still challenges, such as electricity and water supply issues in the state. In our own developments, we’ve also faced difficulties in obtaining sufficient water supply there,” he added.
At present, Glomac has about 600 acres of land bank, primarily located in the Klang Valley and Johor, with an estimated potential gross development value (GDV) of RM6 billion.
As at end-July, the group held cash and bank balances of RM181.59 million against short-term borrowings of RM72.29 million and long-term borrowings of RM163.12 million. Total assets stood at RM1.77 billion while total liabilities amounted to RM535.26 million.
Expecting a return to profitability
FD Iskandar said Glomac is poised to return to profitability from the second quarter onwards—after posting its first quarterly loss in four years last month—as revenue contributions from ongoing projects begin to pick up.
The group posted a net loss of RM1.42 million for its first financial quarter ended July 31, 2025 (1QFY2026) compared to a net profit of RM7.28 million a year earlier. This marks its first quarterly loss since 4QFY2020, as revenue fell 64.4% to RM26.05 million from RM73.29 million.
“It’s a matter of timing. At Glomac, we have a policy that once a project reaches 70% sales, only then do we award it to contractors — and we only recognise revenue once construction progress hits 30%. Some say we’re too conservative, but I prefer it that way,” he said.
“Some of the projects we’ve awarded haven’t reached that 30% threshold yet. Since May, we’ve awarded one or two new tenders, and once they hit 30%, revenue will start to come in. I’m confident that by the second quarter, we’ll be back in the black—and for the full year, we’ll be profitable.”
At the press conference, he expressed optimism about the group’s property outlook, citing strong demand for landed homes, although the strata (high-rise) segment remains slow and challenging.
“We launched our Serai 2 project in Sungai Buloh only in July, and it has already achieved a 70% take-up rate. We plan to launch more landed projects soon as we see buyers’ sentiment remains strong. For high-rise development, the market has been challenging even before the sales and services tax (SST) expansion came into effect,” he added.
Despite recording lower sales of RM20 million in 1QFY2026, Glomac Bhd remains confident of achieving its full-year sales target of RM400 million, supported by strong take-up at projects such as Serai and Allamanda @ Saujana KLIA, as well as KEYS, Lakeside Residences in Puchong, said FD Iskandar.
Shares of Glomac were unchanged at 33.5 sen at the time of writing on Thursday, giving it a market capitalisation of RM264.09 million.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
