Property

Local Property Developer Looks to the Future Despite Covid Challenges

Tranquil Lakeside Setting at Sena Parc Senawang

The pandemic has presented unprecedented challenges to numerous industries and markets across the world. Here in Malaysia, the struggles are just as real. However, for at least one property company, who perhaps rather providentially ends its fiscal year on March 31, the numbers on the books are still looking healthy.

Land & General Berhad followed up its 57th Annual General Meeting with an announcement that the group recorded a marginal improvement in revenues, though it was alongside a reduction in pre-tax profits.

The group’s revenue of RM139.7 million for its financial year ended 31 March 2020 (“FY2020”) was marginally higher compared to RM134.4 million for the corresponding financial year ended 31 March 2019 (“FY2019”).

Revenue was principally derived from the property division, led by the three on-going development projects which are Astoria Ampang, Sena Parc Senawang, and Damansara Seresta. Sales and construction progress at all three projects during the financial year led to the higher revenues in FY2020 compared to FY2019.

The group’s pre-tax profit was RM26.2 million for FY2020, down from RM52.9 million a year ago, primarily due to its other income being reduced by half in FY2020 because of a significantly lower write-back of provision relating to liquidation of a former subsidiary as compared to a year ago.

As its Board of Directors took the view that the group should conserve its cash resources to cushion any potential adverse economic impact from the Covid-19 pandemic, the L&G Group did not propose any dividend for FY2020.

During FY2020, the group concentrated on developing and selling its on-going projects, which resulted in achieving higher number of units sold and sales value achieved as compared to a year ago.

A Diverse Slate of Projects

Astoria Ampang Phase 1, which comprises 506 units of serviced apartments, will be handed over to home buyers next month. This project comprises two phases of 1,012 units, with total GDV of RM840 million. Phase 1 has achieved a take-up rate (including bookings) of 391 units, or 77% to-date.

Astoria Ampang | Artist’s Rendering

Sena Parc Phase 1A, located in Senawang, comprises 163 units of double-storey terrace link houses with GDV of RM79 million, and was handed over earlier this month with a take-up rate (including bookings) of 150 units, or 92%. L&G plans to soft launch a new Phase 1C, comprising 54 units of double-storey terrace link houses with GDV of RM27 million this month.

Promoted

The group’s other on-going project is Damansara Seresta located in Bandar Sri Damansara, comprising two blocks of 452 condominium units with GDV of RM450 million. The take-up rate (including bookings) for this project is 213 units, or 47% to-date. This project is expected to be completed in 2022.

Damansara Seresta | Concept Rendering

For the next calendar year, meanwhile, the group plans to launch two new development projects, namely Aria Rimba in U10 Shah Alam, and an as-yet-unnamed project located at the former Sri Damansara Club in Bandar Sri Damansara.

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 RM107 million.

The Sri Damansara Club project will be a 14-acre mixed development located along Persiaran Perdana near the group’s head office in Bandar Sri Damansara, with an estimated total GDV of RM2.0 billion. For next year, L&G plans to launch Phase 1 (732 units of high-rise serviced apartments) and Phase 2 (602 units of affordable Type D units) with a combined GDV of RM570 million.

To learn more about Land & General Berhad, their projects, and the group’s financial performance, visit www.land-general.com.




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