LBS Bina Group Bhd expects its mixed township project on Pulau Indah, in the vicinity of Port Klang, to realise a gross development value of RM2.85bil over the next seven to eight years.
The project, a joint venture between LBS subsidiary Puncak Gama Sdn Bhd and Central Spectrum Sdn Bhd, covers two parcels of land totalling 1,414 acres in Sections 2 and 11 of the island.
On completion, the township will have more than 14,700 units of apartments, terraced houses, semi-detached units, bungalows and shops.
A smart partnership agreement on the project was signed between Puncak Gama and Central Spectrum in Bandar Sunway yesterday. LBS had last month acquired a 51% stake in Puncak Gama for RM510,000 cash.
In an interview with StarBiz, company managing director Datuk Lim Hock San said the latest joint venture would expand the group's land-bank to 4,258 from 2,844 acres previously and ensure that it had a steady earnings stream over the next seven to eight years.
The initial phases of the Pulau Indah township, to be launched in the second quarter next year, will comprise mainly low- to medium-range properties; higher-end properties are planned for later launches.
About 85% of the development will be affordable housing, with an average built-up of about 1,100 sq ft and priced from RM150,000 to RM180,000.
“The project should start to contribute to group earnings from the financial year ending Dec 31, 2005,” Lim said. ''Given its strategic location, we are confident of its tremendous potential, and expect good response for our properties there.''
”The massive development plans to turn Pulau Indah into a commercial and maritime hub with industrial, commercial, tourism and recreational activities have given the project a competitive advantage,” he added.
With their close proximity to West Port and its neighbouring industrial park, the two land parcels are within reach of well-supported infrastructure and amenities, and are easily accessible via the Shah Alam Expressway, the Federal Highway, Kesas Highway, the New Klang Valley Expressway, and the proposed South Klang Valley Expressway.
The rapid development on the island has created many job opportunities and massive migration from the mainland is expected, which will accentuate the need for housing in the area.
Lim said LBS was also looking at other joint-venture opportunities for residential development in the Klang Valley.
Bandar Saujana Putra, sited next to the USJ/Putra Heights townships, accounted for half the RM520mil sales recorded by the group last year.
This year, the project is expected to contribute 39% of the RM600mil in anticipated sales. An additional 3,500 property units with gross development value of RM400mil are targeted for launch this year.
For the financial year ended Dec 31, 2003, LBS's group net profit jumped 23% to RM33.2mil on a 27% increase in turnover to RM347.8mil.
A first and final dividend of 5.5%, less tax, has been recommended for FY2003.