L&G to launch RM4.3b projects next year

The projects are Aria Rimba in Shah Alam, serviced apartments in Seri Kembangan and high-rise condominiums in Bandar Sri Damansara

by LYDIA NATHAN / TMR file pix

LAND & General Bhd (L&G) will roll out three projects with an estimated gross development value (GDV) of RM4.3 billion in 2019.

These projects are the Aria Rimba terrace and semi-detached housing development in Shah Alam, six-tower 2,222 unit serviced apartments at The Mines Resort in Seri Kembangan, and a high-rise residential development in Bandar Sri Damansara.

MD Low Gay Teck said the company is well capitalised to take on the projects, while at the same time, managing this year’s development projects.

“We plan to launch the Aria Rimba project, which spans across 112 acres (45.32ha) of land in Shah Alam, sometime in the middle of next year,” he said to reporters after the group’s AGM in Kuala Lumpur yesterday.

Low said with a GDV of RM1.1 billion, the project, which is already in the works, will cater to the government’s affordable housing scheme. The serviced apartments at The Mines Resort will have a GDV of RM1.6 billion, while the high-rise condominiums in Bandar Sri Damansara will have a GDV of RM1.5 billion. “We also plan to launch the serviced apartments next year,” Low said.

As for the group’s ongoing projects, Low said the launch of phase 1 of its 506-unit property development, Astoria Ampang, has achieved a 70% take-up rate. The GDV of Astoria is RM840 million.

Its Sena Parc phase 1A project in Senawang, which has a total GDV of RM230 million, already has a 63% take-up rate.

“We have thus far pushed out 163 units of double-storey terrace houses with a GDV of RM79 million and are optimistic of the next phase,” he said.

According to Low, L&G embarked on a registration exercise of prospective buyers for its Damansara Seresta project, comprising 452-unit high-rise condominiums in Sri Damansara, with a GDV worth RM480 million, in June 2018.

“We are targeting to launch the project in October this year and we are optimistic the take-up rate will be progressive,” Low said.

Low said the property segment was the largest contributor to the group’s revenue in the last financial year.

“The property segment contributed about 75%, while the remaining 25% came from the education side.”

“The property segment will continue to be the main driver and core essence of our business, even though the school has generated a consistent revenue of over RM4 million,” Low said.

On a separate note, Low said the construction of Sri Bestari International School’s new division has commenced.

“We will be constructing new classrooms, a swimming pool, a new administration block and other facilities.”

“It will be built on the same land as Sri Bestari Private School, within 15 acres of the land,” he said.

L&G said with its RM385 million cash reserve and close to RM1.6 billion asset base, the group is in a good position to replenish its landbank

“We can afford to be opportunistic since we have projects in the pipeline that should keep us busy for the next eight to 10 years, and also sufficient landbank to last for the next 10 to 15 years,” said Low.