Avaland, formerly MCT, achieved profitability in 2022 thanks to its transformational efforts
News Credit To New Straits Time
KUALA LUMPUR: MCT Bhd, which has been rebranded as Avaland Bhd, turned around its financial performance and returned to profitability in 2022 thanks to its transformation effort, which started four years earlier.
Chairman Tan Sri Abi Musa Asa'ari Mohamed Nor said at the rebranding event on Friday, that this accomplishment, together with the continued success in the first quarter of this year, is proof of the value of the strategies put in place by the hardworking team at the company.
Ayala Land Inc., the largest property developer in the Philippines, bought a majority stake in the company in 2018. Avaland has since undergone a comprehensive organisational restructuring exercise and refocused its core business on property development.
Avaland's chief executive officer, Teh Heng Chong, said that the company quickly adjusted to the new normal and changing market conditions despite encountering unheard-of difficulties, including the aftermath of the COVID-19 outbreak, rising expenses, and inflation.
He said that the company had adopted digital transformation, put strict cost-management measures in place, and made sure that it could continue to provide clients with operational continuity.
Since 2019, Avaland has launched seven new projects, comprising roughly 2,500 units, with a total gross development value (GDV) of RM2 billion.
The company's transformation is evident in its improved market perception.
"Recent projects like Aetas Damansara and Alira Subang Jaya have achieved healthy sales and take-up rates despite the timing of these projects, which were launched during the pandemic," he said.
The name "Avaland" is derived from "Avant-Garde" which means to embrace innovation and introduce new concepts.
"That's exactly what we have done in recent years by reinventing ourselves and rediscovering new possibilities of growth. The word 'Ava' evokes a sense of revitalisation and dynamism, perfectly capturing the transformative nature of the company with a renewed culture that places customer centricity and performance at the forefront," he said.
Teh said Avaland's name also bears resemblance to that of its parent company, Ayala Land.
"This association allows it to leverage the achievements of one of the most established property developers in the Philippines, opening new opportunities for growth.
"By tapping on Ayala Land's expertise and solid track record in developing large-scale integrated, mixed-use, and sustainable estates, we are confident of achieving our rebranding initiative's goal to elevate our corporate branding and build trust among our customers, and stakeholders," he said.
As part of its growth plans, Avaland has expanded its land bank with the acquisition of a 4.02-acre land at Bangi in 2022.
It also made its first foray in Kuala Lumpur with the acquisition of a 1.57-acre land in Taman Seputeh and a 3.9-acre land in Taman Desa this year.
Its pipeline launches for 2023 has a combined GDV of RM1.2 billion, which include Alora Residences and Amika Residences in Subang Jaya.
Coupled with having robust unbilled sales of RM850 million as of 30 June 2023, the Company expects that these will all contribute to the future earnings of the Group.
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