LBS Bina plans more JVs with landowners

KUALA LUMPUR (June 1): Property developer LBS Bina Group Bhd is in talks with two landowners in the Klang Valley to expand its portfolio of land available for development via joint ventures (JV).

“Currently we are in talks with two landowners [in the Klang Valley to develop their plots] on a JV basis, but no agreements have been confirmed,” said the group’s managing director Tan Sri Lim Hock San when speaking to reporters after the group’s annual general meeting yesterday.

“Once the plans have been firmed up, we will make the necessary announcements,” Lim added.

He said the group’s total undeveloped land bank now totalled 3,920 acres (1586.35ha), scattered across both Peninsular Malaysia, Sabah and Sarawak, and has a collective future gross development value (GDV) of RM30.6 billion.

“As a property developer, we are always looking to acquire new land bank, and [we will do so if a good opportunity presents itself]. And subject to the group’s cash flow, we will continue to look for landowners on a JV basis,” he said.

Meanwhile, the group plans to launch six new projects, with a combined GDV of RM1.88 billion, in the next seven months.

Among them are the RM628 million-GDV Alam Perdana development in Northern Klang Valley, which Lim said will comprise of two-storey link and townhouse units; the Skylake Residences in Puchong, which has a GDV of RM372 million; and the Perumahan Penjawat Awam 1Malaysia serviced apartments in Bukit Jalil, which has a GDV of RM353 million.

“All the [six] projects are in the affordable housing segment, with units in the price range of about RM500,000,” Lim said.

Aside from these six, the group has 17 ongoing projects with a total GDV of RM3.2 billion, which have an average take-up rate of 72%, said Lim.

“[In view of our ongoing projects and expected launches this year], we are confident we can achieve our RM1.5 billion sales target that we have set for the year,” he said.

Meanwhile, on the group’s JV with Zhuhai Jiuzhou Group Holdings Ltd, the investment arm of the Zhuhai City government in China, Lim said he is still positive about its progress, adding that the group expects to obtain planning and layout approvals for the project within the next few months.

The collaboration with Zhuhai Jiuzhou is to upgrade and transform the Zhuhai International Circuit, with the new development expected to feature a motor racing track, hotel, and theme park.

LBS Bina shares slid three sen or 1.46% to RM2.02 yesterday, valuing the group at RM1.35 billion. Year to date, the stock has climbed 22.28%.

This article first appeared in The Edge Financial Daily, on June 1, 2017.

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