IN what is deemed a rare tie-up, two non-Klang Valley-based property developers – Perak-based Lagenda Properties Bhd and its Kedahan counterpart, Bina Darulaman Bhd – have forged a tie-up to build affordable houses in the latter’s home state.
This follows the inking of a joint venture-cum-shareholders’ agreement (JVSA) today to incorporate a joint venture company named BDB Lagenda Sdn Bhd between LPB Development Sdn Bhd (a subsidiary of Lagenda Properties) and BDB Land Sdn Bhd (a subsidiary of Bina Darulaman).
BDB Lagenda will undertake an affordable housing development project known as Darulaman Putra on five parcels of lands – all located at Bandar Amanjaya, Kedah – measuring 230 acres.
The expected gross development value (GDV) for the project is approximately RM565 mil.
Each party will have a 50% stake respectively in BDB Lagenda. Located 10 minutes away from the Sungai Petani City Centre, the development is situated next to the North-South Expressway with an estimated population of 200,000.
It will predominantly consist of single-storey terrace houses, coupled with some elements of commercial development to be built in phases.
Bina Darulaman’s president & group CEO Faris Najhan hoped that the joint venture between BDB Land and Lagenda will enable more Kedahans from the B40 and M40 income group to own their dream homes.
“We can leverage on BDB Land’s expertise in property development combined with Lagenda’s strong track record in developing large-scale housing projects specialising in affordable housing,” he pointed out.
“As Kedah is one of the states with the highest B40 income group by ratio, the group intends to expand its land bank in the state via acquisitions or joint venture deals in order to build 20,000-30,000 houses within the next 10 years for the much-underserved community.”
According to Lagenda’s managing director Datuk Jimmy Doh, BDB Lagenda intends to launch houses at below RM200,000 during the first phase in 2022. He also envisages the project to boost the top and bottom lines of Lagenda, starting from 2023.
“It will give us three years of earnings visibility on top of the contribution from our existing townships,” he projected.
“We remain very committed in our vision of One Home for One Malaysian. Therefore, we will continue to expand our business blueprint in other states of Malaysia.” – April 6, 2021