LBS lines up affordable housing in Klang Valley

Property developer targets RM1.5bil sales this year

Property developer LBS Bina Group Bhd is targeting a 15% year-on-year growth in sales to RM1.5bil this year, as it plans to launch a slew of affordable housing projects with total gross development value (GDV) amounting to RM2.3bil.

Managing director Tan Sri Lim Hock San said the company is planning 12 launches comprising 5,543 units, of which 4,284 units would consist of affordable homes priced below RM500,000 this year.

“Of the RM1.5bil sales target, about 77% is below RM500,000.

“We try not to sell units above RM600,000 as the loan rejection rates are higher for these units,” he said at a media briefing yesterday.

“Every developer wants to go into affordable housing now, but we’re already there. We’ve been offering medium-cost housing.”

Most of the projects to be launched will be in the Klang Valley.

The company will also be launching projects in Pahang and Johor.

The projects in the Klang Valley included those in Bandar Saujana Putra, Puchong, comprising D’Island Residence, Langit and Lake and Desiran Bayu as well as Bukit Jalil, Alam Perdana and CyberSouth.

Other projects included Cameron Centrum and Cameron Golden Hills in Cameron Highlands, Pahang, as well as Bandar Putera Indah in Batu Pahat, Johor.

Lim said the company had about 3,532 acres as of 2016.

The plots of land are in the Klang Valley (45%), Johor (35%), Perak (14%), Pahang (5%) and Sabah (1%).

“We have land to develop affordable housing anywhere, and not just in one area.”

Lim also said LBS Bina is ready to hand over 1,127 homes with a combined GDV of RM463.2mil.

The company achieved sales totaling RM1.24bil in 2016, a 21% growth from RM1.02bil in 2015.

As of Dec 28, 2016, LBS Bina’s unbilled sales stood at RM1.48bil.

Lim said the bulk of the company’s earnings were from its BSP 21 (in Bandar Saujana Putra) project in Puchong, which contributed around RM591mil last year.

Commenting on the outlook for the property market, Lim said he expected the segment to start picking up by either the third or fourth quarter of this year.

For its third quarter ended Sept 31, 2016, LBS Bina achieved a net profit of RM20.46mil compared with RM19.71mil in the previous corresponding period, while revenue was at RM245.27mil compared with RM136.57mil a year earlier.

The improved earnings were mainly attributed to projects at Bandar Saujana Putra, D’ Island Residence, Cameron Golden Hills, Bandar Putera Indah, Sinaran Mahkota, Midhills, Alam Awana and Desiran Bayu. - The Star