LBI to launch RM70m project in Puchong

LBI Capital Bhd expects to launch a 14.4ha industrial park in Puchong Perdana, this year, a project with a potential gross development value (GDV) of up to RM70 million.

Its managing director Datuk Ng Chin Heng said the the new industrial area will cater for the needs of various industries especially those from the small- and medium-sized sector.

"We see high demand for industrial areas due to the growing number of SMEs in the country and we expect to start seeing some revenue from the project by 2009 onwards," he said.

The company also hopes to attract freight forwarding companies as part of efforts to turn the area into a logistics hub.

LBI, which jumped into the property development business in 2004 with its first project in Ara Damansara, has since turned to the sector as its main revenue contributor.

"The property development business contributes more than 95 per cent of our earnings while our manufacturing business of rubber mats and outer shoe soles makes up the balances," he said.

The firm was also previously the supplier of air-conditioners to carmaker Proton Holdings Bhd but exited the business due to stiff competition.

Ng said LBI is currently banking on four property projects with total GDV RM230 million - three in the Klang Valley and one in Johor Baru - to drive profits for the group until 2010.

Its project in Taman Putera near Seri Kembangan with a GDV of RM73 million will be the main revenue contributor this year.

"The project comprises 100 units of two- to three-storey shoplots with 83 per cent of it already sold," he said.

Ng said the firm's other projects such as the Semi-D terraced houses in Taman Sri Gombak, bungalows in Seri Kembangan and a mixed development project in Johor Baru, are due to start contributing revenue next year.

"We will continue to look for land preferably in the Klang Valley and develop high-end properties to sustain growth," he said.

By New Straits Times (by Azlan Abu Bakar)