LBS sets RM1.5 bil sales target for 2017

PETALING JAYA (Jan 5): LBS Bina Group Bhd plans to launch 12 new projects with a total gross development value (GDV) of RM2.349 billion. It aims to achieve a sales target of RM1.5 billion in 2017.

"Although we expect the market this year to be challenging, LBS is aiming for a higher sales target of RM1.5 billion because we are confident of our launches," said LBS group managing director Tan Sri Lim Hock San during the company's 2017 outlook media briefing today.

The developer delivered a total of 1,971 units and recorded RM1.238 billion in sales in 2016, surpassing it's target of RM1.2 billion sales. Unbilled sales stood at RM1.48 billion as at Dec 28, 2016. 

This year, LBS is ready to hand over about 1,127 homes worth a total of RM463.2 million.

The developer will be focusing on projects in the Klang Valley but plans to venture into new areas including in the south.

"BSP21 @ Bandar Saujana Putra has been our main revenue contributor for the past three years. But we cannot rely solely on it. We see potential in Ijok, Dengkil and in the south such as Kulai in Johor. We will have more landed property launches in these areas in the future," said Lim. 

BSP21 comprises 10 blocks of serviced apartments, where nine blocks have already been launched and 83% sold. The last block will be launched this month. The project has a GDV of RM1.4 billion.

In Johor, it is mulling a joint-venture project in Kulai. The group will also be launching 462 units of single and double-storey houses in Batu Pahat this year. The affordable housing project has a GDV of RM94 million.

Among the new project launches this year are BSP21 @ Bandar Saujana Putra (GDV RM184 million), BSP6 @ Bandar Saujana Putra (GDV RM387 million), BPS BayuanMas @ Bandar Saujana Putra (GDV RM107 million), Desiran Bayu @ Puchong (GDV RM92 million), Langit & Lake @ Puchong (GDV RM372 million), Bukit Jalil (GDV RM170 million), LBS Alam Perdana @ Ijok (GDV RM420 million), LBS CyberSouth @ Dengkil (GDV RM278 million), Cameron Centrum @ Pahang (GDV RM183.7 million), Cameron Golden Hills @ Pahang (GDV RM59 million), Magma Garden 2 @ Bandar Putera Indah, Batu Pahat (GDV RM48 million) and Emerald Garden 2 @ Bandar Putera Indah, Batu Pahat (GDV RM48 million).

"LBS will continue to offer what the market needs. The majority of our launches are priced between RM500,000 and RM600,000 and this year, some 77% of the new launches will be priced at RM500,000 and below," Lim said.

In 2016, LBS added 865 acres to its landbank, an increase of 32% from 2015. As of today, the group has 3,531 acres of land.

"About 45% of our land are located in the Klang Valley, the rest are all over Malaysia, including Kota Kinabalu. We have an estimated GDV of RM27.4 billion, or 58,842 units," Lim said.

Meanwhile, as the substantial shareholder and managing director to public listed construction company ML Global Bhd, Lim said most of the major contracts for LBS projects will be awarded to ML Global.

ML Global’s order book was RM1.92 billion as at Dec 31, 2016. Besides LBS contracts, the company is ready to tender for some government jobs, he added.