LBS has a total of 15 ongoing projects, says Lim

By Joseph Wong

josephwong@thestar.com.my

KUALA LUMPUR: LBS Bina Group Bhd (LBS) has revised its sales target to RM1bil for the financial year 2020, from RM1.6bil announced in January, but is confident of overachieving their new target.

Taking the impact of the Covid-19 pandemic into account, group managing director Tan Sri Lim Hock San said LBS was averaging an estimated RM100mil in sales every month and given the positive demand for its developments, breaching the RM1bil target is highly possible.

He said LBS reviewed its sales target in April following the implementation of the government’s movement control order (MCO) which had impacted consumer spending compounded by the weaker economic and retrenchment exercises undertaken by many companies.

However, following the loosening of the MCO and reopening of the economy, sales momentum had picked up, said Lim.

“Looking at the momentum of the sales over the past few months, coupled with lower interest rates and the government’s Home Ownership Campaign, we expect we can be able to surpass the target of RM1 billion,” Lim announced this after the group’s annual general meeting.

He pointed out that during the MCO period, the company received RM337mil worth of bookings, which were later converted to sales once the buyers were again free to inspect the show unit at their sales gallery.

“As you know, during the MCO, the buyers were unable to sign the SPA (Sales and Purchase Agreement),” he said, adding that many were also keen to view the show unit before they committed to the purchase.

Meanwhile, total unbilled sales as at July 15, 2020 stood at RM2bil, which Lim said can be translated into earnings in the next two years.

“To date, LBS Bina has a total of 15 ongoing projects with an estimated gross development value (GDV) of RM4.3 billion. As at June 30, 2020, LBS Bina owns future land bank of 3,591 acres. This land bank is projected to keep the company busy for the next 10 to 15 years,” he added.

He revealed that LBS plans to launch properties with a combined GDV of RM3bil in the next nine months.

These include new projects and phases at its Kita @ Cybersouth development and Bandar Puncak Alam in Selangor, as well as developments in Pahang and Johor. These properties include Kita Sejati, Kita Mekar, Ritma Perdana, a new block of Melodi Perdana, Vines 3, Emerald Garden 3 and Bayu Hills.

Over the past three years, LBS Bina has handed over 5,526 properties. In 2020 and 2021, it aims to hand over a total of 7,181 units.

Lim is confident that the property development sector will bounce back from the negative impact of Covid-19, and despite the weakened economy, homeownership will continue to be prioritised by buyers and investors.

The demand for LBS property is still strong and with interest rates at an all-time low, and coupled with the many incentives provided by the reintroduced Home Ownership Campaign, the time to buy a property is now, he said.