AFFORDABLE Perak-based housing and integrated township developer Lagenda Properties Bhd has been on an expansion spree to increase its presence in other states outside its home base.
More recently, the company, via its wholly-owned subsidiary LPB Development Sdn Bhd, has signed a sale and purchase agreement to acquire 500-acre of land in Kuantan (Pahang) for RM33 mil (or about RM1.51/sq ft).
Lagenda intends to undertake a self-sustainable and affordable township development which offers a diverse mix of affordable housing and commercial building such as single storey semi-detached houses, single storey terrace houses and shop offices that are supported by infrastructure as well as a variety of facilities and public amenities.
Boasting an estimated gross development value (GDV) of about RM1 bil, Lagenda expects to commence part of the development by 2023.
Located about 16km southwest of Kuantan town centre, the said land is easily accessible via the Gambang-Kuantan Highway.
“This land acquisition represents part of our continuous efforts to increase our presence by identifying viable landbanks to deliver sustainable growth to Lagenda,” commented its managing director Datuk Jimmy Doh.
“This is consistent with the group’s strategy to acquire landbank in areas with resilient demand for homes at affordable prices of below RM200,000 and is supported by infrastructure improvements in the surrounding area.”
In line with Lagenda’s previous land acquisitions, the cost of the Kuantan land is circa 3-4% of the GDV, thus enabling Lagenda to continue delivering exceptional profit margins ranging from between 25% and 30%.
The next few years will be very exciting for the company.
“We are launching our third and fourth affordable township development in Tapah and Sungai Petani by 2021 and 2022,” projected Doh. “This Kuantan project which is our fifth will have development period of approximately five years, hence providing visibility and sustaining our earnings for the next few years.”
With this, Lagenda will have presence in Perak, Kedah and Pahang and on its way to achieve its vision of being a Nationwide Affordable Township Developer.
At 2.51pm, Lagenda was up 2 sen or 1.56% to RM1.30 with 288,500 shares traded, thus valuing the company at RM1.06 bil. – June 23, 2021