Following its 56th Annual General Meeting (“AGM”), Land & General Berhad (“L&G” or the “Company”) announced its achievement delivered an improvement in its revenue and core pre-tax profits, driven by sales and construction progress at its three (3) on-going development projects, namely Astoria Ampang, Sena Parc in Senawang and Damansara Seresta in Sri Damansara.
The group’s revenue of RM134.4 million for its financial year ended 31 March 2019 (“FY2019”) was higher compared to RM92.3 million for the corresponding financial year ended 31 March 2018 (“FY2018”). Revenue was principally derived from the property division, led by the on-going Astoria Ampang project.
During the financial year, the Group launched 2 projects, namely Sena Parc in Senawang and Damansara Seresta in Bandar Sri Damansara. Sales and construction progress at all three (3) projects during the financial year led to the higher revenue in FY2019 compared to FY2018.
For next calendar year, the Group plans to launch two (2) new phases of its existing Sena Parc project in Senawang, Phase 2 of its Astoria Ampang and a proposed new project – Aria Rimba at U10, Shah Alam.
The two (2) phases of Sena Parc township will comprise 74 units of semi-detached houses and 54 units of double-storey terrace houses with total GDV of RM82.7 million. Phase 2 of Astoria Ampang will comprise another 506 units of condominiums with total GDV of RM420 million.
Aria Rimba will be a 112 acres township development with estimated total GDV of RM1.2 billion. For next year, L&G is expected to launch Phase 1A (150 units of double-storey terrace houses) and Rumah Selangorku Type A (162 units of medium-rise apartments) with a total GDV of RM111.8 million.
“We already have 3 on-going projects. We are careful with our product launches next year, yet at the same time, we are optimistic that the Government’s initiatives such as the Home Ownership Campaign and stamp duties waiver will stimulate the property industry. We want to take advantage of an upward trending market by launching new phases of existing projects and one (1) new project, Aria Rimba. In terms of GDV, we will be launching RM615 million’s worth of products”, says Low Gay Teck, the Managing Director.
L&G is in a healthy financial position to replenish its landbank with its RM219 million cash reserve and over RM1.5 billion asset base. The Group’s gearing ratio stands at only 0.17 times of its shareholders’ funds. “We can afford to be opportunistic on land banking as we now have a pipeline of projects to keep the Group busy for the next 8 to 10 years, and sufficient landbank to last for the next 10 to 15 years,” says Low.
During FY2019, the Group has embarked on township development to diversify their product mix through the launch of its Sena Parc project in Senawang (total GDV RM230 million), which is situated at the previous golf course resort of Tuanku Jaafar Golf and Country Resort. Phase 1A which comprises 163 units of double storey terrace link houses with GDV of RM79 million has a current take-up rate (including bookings) of 60%.
“We are confident that there is demand for a well-designed landed development township that is affordably priced, surrounded by lush, beautiful parks and a stone’s throw away from major townships like Seremban and Senawang and their many conveniences,” says Low.
“The Sena Parc township will be developed over a period of 6-8 years, so there is every opportunity for our initial home buyers to see capital appreciation for their purchased homes in due course”, added Low.
The Group had also launched its Damansara Seresta project (total GDV RM480 million), a 452 units high-rise condominium next to its very successful Damansara Foresta at Bandar Sri Damansara in FY2019. Block A which comprises 218 units of condominium with GDV of RM218 million has a current take-up rate (including bookings) of 39%. “Leveraging on our previous success in Damansara Foresta which is right next door, we decided to launch Damansara Seresta last year.
Given its elevated location adjoining the green hills of Bukit Lanjan with a stunning unobstructed view of the PJ city skyline and its close proximity to MRT station will be major selling points with home buyers”, says Low.
Astoria Ampang, its other on-going project is a high-rise development in Jalan Ampang with Gross Development Value (“GDV”) of RM840 million. It has a current take-up rate (including bookings) of 69% for its Phase 1 launch of 506 units. L&G’s current unbilled sales is RM182.9 million from its three (3) on-going development projects.