L&G to launch properties worth over RM1.6 bil in next six months

KUALA LUMPUR (Sept 7): Land & General Bhd (L&G) is aiming to launch projects worth more than RM1.6 billion in gross development value (GDV) in the next six months, despite the challenging market environment.

The launches comprise new phases from three of its projects. The new launches include the Astoria Ampang @ Jalan Ampang’s tower 2 (GDV RM863 million), Damansara Foresta @ Bandar Sri Damansara’s phase 2 (GDV RM480 million) — both in Kuala Lumpur, and Sena Parc @ Senawang’s phase 1 (GDV RM260 million) in Negeri Sembilan.

“In the next six months, we will not be holding back our launches because our projects are located in prime areas, and we offer good quality,” said L&G managing director Low Gay Teck after the company’s AGM held in Bandar Sri Damansara today.

The developer is targeting to launch tower 2 of the mid to high-end serviced apartment Astoria Ampang at the end of September, following good take-up of 60% for tower 1, which was officially launched in April.

It will also be launching another mid to high-end serviced apartment for phase 2 of Damansara Foresta early next year, as well as landed houses in Sena Parc’s phase 1 as early as the end of this year. 

“Last year, we announced the acquisition of a 112-acre plot of land in Section U10, Shah Alam. We are expecting the purchase to be completed in the next one or two months. If everything goes smoothly, we will kick-start the development over three phases in 2017,” Low said.

He estimates the project to have a GDV of RM1.2 billion with predominantly landed homes, including terraced houses and semi-detached houses. Other components will be serviced apartments and commercial properties.

Besides Sena Parc and Section U10, Shah Alam, L&G has a 250-acre site in Kerling, Sungai Jernih in Hulu Selangor for a township development.

“We are trying to balance out our development profile. We have way more high-rise projects compared with landed in recent years. Nevertheless, when opportunity comes, be it a pocket-sized land or a big chunk of land, we are open to any good option,” Low said.

Currently, besides the Sungai Jernih site, L&G has an undeveloped landbank worth about RM3.3 billion in GDV that could keep it busy for another seven years.

Low stresses that L&G has no immediate plans to build affordable housing due to high land prices. However, the company has allocated some land plots in Sena Parc and Section U10 to build affordable housing under a government scheme.

“To solely acquire a piece of land for affordable housing, we don't have that now,” he said.

Low also said the company is currently in talks with a few parties for land deals in the Klang Valley.

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