LBS Bina to launch RM6b projects over next 3 years, says managing director

PETALING JAYA: LBS Bina Group Bhd has lined up RM6 billion worth of new projects for launch in the next three years from 2015 to 2017, said managing director Datuk Seri Lim Hock San.
In term of gross development value (GDV), 60% is planned for Selangor, followed by 25% in Johor and 15% in Pahang.
Lim said the property developer is targeting sales of RM1 billion this year compared with RM644 million achieved in 2014, mainly on the back of BSP21 serviced residences, BSP Village shop offices in Bandar Saujana Putra in the Klang Valley.
"For the first quarter of 2015, the group achieved sales of RM234 million, a 38% increase compared with RM169 million in the first quarter of 2014," he told a media briefing last Friday.
He said the improved sales was mainly due to the positive response from the BSP21 serviced residence that is affordably priced, which contributed 68% of the total sales in the first quarter of 2015.
Projects to be launched in 2015 include the BSP Village shop offices and BSP21 serviced residence, Corallia semi-detached homes and SkyVilla condominium in D'Island Residence in the Klang Valley.
These projects are offering up to some 2,600 units in total with a GDV of RM1.7 billion, consisting of 81% (RM1.3 billion) residential projects and the remaining 19% (RM369 million) non-residential projects.
It expects to follow in 2016, with some 4,000 units launches in Selangor, Pahang and Johor with a total GDV of RM2 billion; and by 2017, another 5,100 units with RM2.2 billion in GDV.
LBS's current landbank stood at 2,715 acres with a GDV of RM22.5 billion that will keep the group busy for 10 years.
Meanwhile, Lim said it is waiting to obtain approval from relevant authorities on the plans for a tourism hotspot on its remaining asset in Zhuhai, China, which is a piece of land with a racing circuit (Zhuhai International Circuit) that occupies some 264 acres.
Under a 60:40 joint venture between LBS and a Chinese government-linked company, the development of the tourism project is expected to include a theme park, factory outlet, car showroom, Malaysia cultural centre and hotel.
"We want to get the concept approved by this year and hopefully we can start next year," said Lim, adding that tourism is a big industry in China and that the project can provide recurring income to the group.
On the implementation of the Goods and Services Tax (GST), Lim said the move will definitely affect property developers.
"Some developer may increase price by 4% to 5% (to cover the GST) but it depends on your profit margin. If our profit margin is comfortable, we'll maintain the selling price," said Lim, explaining that it currently does not increase prices but further decision would depend on its profit margin.