The first project, located off Jalan Ampang, Kuala Lumpur, is planned for a third-quarter launch. It will feature some 1,000 units of high-end studios, one- and two-bedroom condominiums, priced above RM500 per sq ft each, as well as lifestyle and retail components.
The project will have a gross development value of RM400 million and is targeted for completion by the fourth quarter of 2013, managing director Low Gay Teck said after its extraordinary general meeting yesterday in Bandar Sri Damansara, Selangor.
"We are positive on the project as it is a niche development. There are not many products of such nature being offered within the vicinity," he said.
The project is expected to yield an estimated gross profit of RM130 million.
Elite Forward Sdn Bhd (EFSB), a 50:50 joint venture between L&G's wholly-owned unit, Synergy Score Sdn Bhd, and Forward Splendour Sdn Bhd will develop it, using internal funds and loans.
Forward Splendour is a company related to Mayland Parkview Sdn Bhd, a major shareholder of L&G.
Shareholders yesterday approved EFSB's plan to buy the 1.04ha freehold land for the project from Sazean Holdings Sdn Bhd, a firm controlled by former minister Tan Sri Abdul Kadir Sheikh Fadzir, for RM55 million.
Low said the second project, which is awaiting approvals from relevant authorities, is a residential development in Bandar Sri Damansara.
L&G will launch it in four phases, starting at the end of this year. The first phase, worth RM450 million, will feature upmarket condominiums, Low added.
L&G expects to do well financially this year. For its fiscal year ended March 31 2009, it made a net profit of RM15.2 million on revenue of RM37.6 million.
The company also has an ongoing commercial project in Bandar Sri Damansara, called 8trium. L&G expects the project, worth RM160 million, to improve profits for the next three years.
L&G is also in an acquisition mode and looking for land in the Klang Valley to add to its portfolio.
By Business Times
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