LBS Bina to transform into high-end property developer

SHAH ALAM: LBS Bina Group Bhd plans to transform itself into a medium- and medium high-end property developer to leverage on the current strong demand for this particular sub-segment and to improve profit margins.

The property developer, which used to focus primarily on low- to medium-income families, would launch new phases in its flagship property project, Bandar Saujana Putra, which has a gross development value (GDV) of RM5.2 billion.

Its managing director Datuk Lim Hock San said the interchange for the township, which will improve accessibility, was opened to the public on March 5 and was expected to improve Bandar Saujana Putra’s appeal.

“The next asset value for LBS is Bandar Saujana Putra,” he said, adding that LBS would build and launch “unit by unit” in order to optimise its profit margin.

Lim added that the development on the South Klang Valley Expressway (SKVE) was also underway and would enhance the value of its property projects when it was fully completed.

“Our area will become a strategic area, so we have to be careful with our launches. We will re-plan our concept to create value for shareholders and enhance the value of LBS,” he said.

The property firm still had more than 202 hectares of undeveloped landbank in the flagship project, Lim added.

“In terms of this land, we are aiming at the higher end market and sell high in order to get more value, more profit for the group,” he said.

LBS, which has a total landbank of 1,092 ha, including in China, decided to add medium-high and high-end properties in its development plan due to weak consumer sentiment and higher cost of buildngs materials such as steel and cement, he said.

Meanwhile, Lim said LBS expected to launch its more than RM5 billion GDV high-end property development project in Zhuhai, China by the end of this year and expected the project to boost the group earnings in the long run.

Speaking to reporters after LBS’s EGM here on Wednesday, he said revenue from its China property development project, which would be developed over eight years, was expected to start contributing to its topline by 2009.

“We are very confident about this project (Zhuhai property development project), it will be a boost to the group,” he said.

The project, targeted at the high-end market, was located within the proximity of a light railway station in Zhuhai and was expected to receive good response, judging from the overwhelming response to other property development projects launched within the vicinity, he added.

By The EDGE MALAYSIA (by Yantoultra Ngui Yichen)