LBS Bina Group Bhd proves its mettle amidst the down-cycle after achieving strong sales of more than RM1 billion worth of properties in 2015.
The slowdown may have caused many developers to hold back on launches but LBS is expecting to sustain strong sales of RM1 billion to RM1.2 billion in 2016.
CIMB Research noted that LBS is expected to hover around the RM1 billion mark through its planned launches mainly in its existing townships in Bandar Saujana Putra (BSP) and D’Island in the southern belt of the Klang Valley.
LBS plans to launch two high-rise projects in BSP and D’Island with a combined gross development value (GDV) of RM700 million. With built-ups around 1,000sq ft, they will be priced from RM450psf to RM650psf.
The group also plans to launch at least RM223 million worth of semi-detached houses in D’Island priced from RM1.3 million to RM1.7 million. Meanwhile, middle-cost and affordable housing projects worth RM350 million are in the pipeline in BSP, Bukit Jalil and Bandar Putera Indah.
The research house said that although LBS’s past and current developments are mainly situated in second-tier locations and suburbs, it has acquired several plots of land in prime and densely-populated areas in recent years, such as in Johor central business district, Danga Bay and Bukit Jalil.
These plots have a combined GDV of RM4.7 billion and LBS may launch these projects within the next one to two years.
Recently, LBS was awarded the Best Company for Leadership of Property Development in the global category at the International Alternative Investment Review Awards in Hong Kong.
As a two-time winner of this award, managing director Tan Sri Lim Hock San said, “Embarking on a dynamic strategy to propel ourselves forward in the property industry both locally and internationally, I truly believe that with our strong sense of foresight and commitment to quality and sustainable environments, we will be able to continue creating inspiring spaces for a long time to come.
“LBS expects a robust performance for the remainder of 2016. With a strong portfolio of properties lined up for this year, the company is confident of achieving its targets.”