Property developer LBS Bina eyes RM1bil sales

Property developer LBS Bina Bhd is targeting to achieve sales worth RM1bil from 12 projects with a gross development value of RM1.7bil to be launched this year.

These are mainly residential properties, priced at below RM500,000 a unit, located in in the Klang Valley, Pahang and Johor.

“We are very confident that we can achieve RM1bil sales as Klang Valley project itself is expected to contribute revenue of RM700mil, whereas the remainder projects in Batu Pahat and Cameron Highlands could both contribute over RM300 mil,” said LBS Bina managing director Datuk Sri Lim Hock San at the media briefing.

He added the company would ascertain there is no delay in the land approval of projects this year compared to last year as it can drag LBS’s revenue.

For the current year, Lim pointed out that the properties to launch would comprise of both residential and commercial properties of 81% and 19% respectively, adding that more than half of the residential properties would be priced below RM500,000.

Moreover, Lim noted that the company would be launching projects with a GDV of RM6bil in the next three year in Selangor, Pahang and Johor comprising of both residential and commerical projects. “We are confident and bullish with the new launches over the next three years,” he said.

The company’s property sales jumped 38% to RM234mil for first quarter ended March 31, 2015, from RM169mil in the corresponding quarter a year ago due to BSP21 sales that contributed about 68% of total sales.

BSP21 are serviced residences located in the company’s flagship township in Bandar Saujana Putra.

Moving forward, with relations to the recurring income for LBS Bina, Lim said the company’s plan to transform Zhuhai International Circuit in China into a tourism hub will start construction by 2016.

“We expect to get approval by the government of China this year so we can start to transform the racing circuit by next year into a tourist spot comprising of factory outlet, retail shops, theme park, car showroom and hotel,” Lim added.

Concerning ML Global Bhd LBS Bina’s associate, Lim said the company’s restructuring plan aims to cut down wastages to increase profitability and is currently looking for more construction jobs.

LBS Bina owns 23.28% of ML Global Bhd.

The company also announced first and final single tier dividend of 3.25 sen per share for financial year ended Dec 31, 2014, which is subjected to shareholders approval at the upcoming annual general meeting on May 29, 2015. - By The Star