Staggered launches: (From left) WM Senibong Sdn Bhd director of sales and marketing Siew Siew Hoon, director of projects Ling Ngie Soon, Quay, director of business development and corporate finance Chan Wei Chun and director of accounts Theresa Quek Siok Kiow.
JOHOR BARU: Property developer WM Senibong Sdn Bhd is exploring an equity fundraising exercise to strengthen its balance sheet, while continuing to leverage its landbank in Johor – which has a gross development value (GDV) of RM36bil –to drive earnings.
Chief executive officer Quay Chew Keong said the company’s total landbank of 816.25 ha across several townships in Johor provides a steady development pipeline for the next two decades, with about 500 acres already launched.
“The total GDV of our landbank is around RM36bil, but the launched GDV to date is only about RM5bil to RM6bil, so we still have a fair bit of work to do,” he told reporters during a media tour of its developments.
As at end-February 2025, the company’s completed inventories stood at RM56.3mil – a level Quay expects to remain low due to its staggered launch strategy aimed at managing working capital efficiently and preventing unsold stock.
He said new phases would only be launched when take-up rates in earlier phases were sufficiently strong.
“For landed phases, we launch new ones after achieving 70% to 80% take-up in the previous phase. For high-rise projects, we time launches once bookings reach 20% to 30%,” he explained.
WM Senibong’s earnings are derived from property development and sales, while recurring income from marina berthing fees and the rental of leased units contributes less than 2% of total revenue.
Walker Group Holdings Pty Ltd, an Australian property developer with over 50 years of experience and a major shareholder in WM Senibong, played a key role in identifying and shaping the company’s maiden project – Senibong Cove – under the guidance of its late founder, Langley Alexander Walker.
The 101-ha site in Masai, Johor, was transformed from a swampy prawn farm into a waterfront residential enclave featuring canals and lush parks, with a total projected GDV of RM7bil.
Since the township’s launch in 2010, WM Senibong has rolled out RM1.8bil worth of projects, comprising roughly 1,600 units of apartments, terrace houses, bungalows, and bungalow plots – all fully sold.
The township still has an ongoing GDV of RM750mil, leaving about RM4.5bil in remaining development potential.
Beyond Senibong Cove, the company’s next major undertaking will be Senibong Islands – a 67-ha reclamation project adjacent to Senibong Cove, with a projected GDV of RM7bil.
In November 2024, WM Senibong issued an Islamic medium-term notes sukuk wakalah programme of up to RM1bil, drawing down RM310mil for the Senibong Islands project – particularly for reclamation costs.
The project is targeted for launch in 2027.
WM Senibong Capital Bhd, the special-purpose vehicle for the sukuk, carries an AA-IS rating with a “stable” outlook from MARC Ratings.
Following the sukuk exercise and a recent land acquisition, the company’s debt-to-equity ratio rose to 0.6 times, up from 0.05 times in the financial year ended June 30, 2024 (FY24).
Despite the increase, WM Senibong remains in a net cash position, holding RM445.1mil in cash and bank balances – excluding housing development accounts.
Quay said the company aims to maintain a prudent capital structure, even as it undertakes larger projects.
“We intend to keep our gearing comfortably around 0.3%. We don’t want to over-gear.
“With these types of developments, we want to release the stock when the market is good. Hence, we’ve got to make sure our gearing is not too high,” he said, adding that the company is exploring an equity fundraising exercise next year to strengthen its balance sheet.
“Senibong is one project – we will not cut prices and sell too cheaply. We will curate and ensure capital growth for Senibong.
“So if the market demand is good, then we will launch more in Senibong,” he added, noting that the company prefers to wait for demand to rise before launching more units.
Besides Senibong, the company continues to develop the 150-ha Crest @ Austin in Johor Baru, with a total potential GDV of RM6bil.
The land was injected into the company by Tan Sri Syed Mokhtar Albukhary-controlled Sigma Senibina Sdn Bhd, a wholly-owned unit of Kelana Ventures Sdn Bhd, as part of its equity participation in WM Senibong.
Since 2020, WM Senibong has launched about RM2.5bil worth of projects within Crest @ Austin, of which RM1bil – comprising landed homes and shop offices – has been completed and sold.
The company’s other development, the 109-ha The Kews & Senibong Golf Club in Gelang Patah, with an estimated GDV of RM6bil, has seen RM500mil worth of launches to date.
More recently, in June 2024, its joint-venture company Senibong Islands Sdn Bhd – 51% owned by WM Senibong and 49% by Sigma Senibina – acquired a 388.5-ha site from SP Setia Bhd
in Tebrau, Johor, for RM564mil.
Located 3km from Crest @ Austin, the land will form the basis of WM Senibong’s next major township, Centennial ParcVista, which is scheduled for to launch in the third quarter of next year.
The project carries a projected GDV of RM10bil, which could rise to RM12bil or RM13bil as the township matures.
Plans for the township include a mix of industrial, residential, and commercial properties.
While WM Senibong has yet to develop an industrial park locally, Quay said its Australian partner brings valuable expertise to the table.
“Although we have no experience developing industrial parks here, the Walker Group is one of the largest industrial developers in Australia.
“There, they don’t build and sell. They lease and then sell to a fund. We are trying to follow their model, and they are guiding us with technical support and expertise,” he explained.
On the operational front, WM Senibong maintains net profit margins of over 20% – well above the industry average of around the mid-teens – by keeping costs lean and fully outsourcing construction to contractors.
“We follow the same philosophy as Walker Corp, where all jobs are tendered. We believe if you build your own projects, there’s always a conflict between quality and delivery.
“We’re happy earning only from development margins. We don’t need to make money from construction, but we expect the contractor to do a good job.
“Of course, if a contractor is good, we form a partnership early so they can advise us on the project,” he said.
As at August 2025, WM Senibong’s unbilled sales stood at RM594mil, with planned annual GDV launches averaging RM1.5bil.
