Sunrise Bhd plans to proceed with the launch of three projects next year despite concerns over cooling property prices.

The projects, two in Malaysia and one in Canada, are worth a combined RM2.5 billion and had been slated for launch in December this year but deferred a few months due to weak market sentiments.

The projects comprise 28 Mont’ Kiara, a six-star condominium development worth RM900 million; Solaris Towers, featuring two office blocks worth RM600 million, and a RM970 million maiden project in Richmond, Canada, featuring five residential blocks with commercial elements.

Executive deputy chairman Datuk Allan Lim Kim Huat said Sunrise will prepare for the launches when the market is better and hold the launches till costs reduce. He did not rule out putting Solaris Towers up for sale en bloc.

According to Lim, Sunrise will grow from the Richmond project as margins are similar to its projects in Malaysia. The project is a modification of Mont’ Kiara but with smaller built-ups of between 600 sqf and 700 sqf.

Lim also expects the easing of commodity prices to stabilise earnings. He hopes Sunrise’s net profit and revenue will perform better this year, given that it has RM1.36 billion of unbilled sales with 32 per cent gross margins that will be realised over the next 30 months.

For its fiscal year ended June 30, 2008, Sunrise achieved a 119 per cent growth in net profit to RM147.8 million from the previous year’s RM67.5 million. Revenue rose by 22.9 per cent to RM685.8 million. Sunrise’s unbilled sales will soon reach RM1.49 billion as it gears up to sell 19 completed bungalows worth RM130 million.

"We hope to improve our performance this year. The next two to three years will not be an issue for us as by 2010, we expect to launch the (mix development) project at Wisma Angkasa Raya in Kuala Lumpur, which is in the planning stage now," Lim said.

Sunrise hopes to maintain the pricing of its products which are targeted at medium- to high-income groups despite the economic slowdown. Its remaining 32ha in Mont' Kiara, with an estimated gross development value of more than RM3 billion, will continue to be the cash cow for the company over the next six to eight years.

Its other land bank include 160ha in Mersing, Johor, 80ha in Seremban, Negri Sembilan and 22ha in Serdang, Selangor for future launches.