PETALING JAYA: Spurred by its profits tripling in the financial year 2012 (FY12), Land & General Bhd (L&G) now aims to break away from the mid-range developer category, with the target to increase its market capitalisation beyond RM300mil and profits above RM40mil.
Managing director Low Gay Teck said a majority of listed property companies in Malaysia fell in that market cap and earnings range, hence the group intended to use that benchmark to push forward.
To achieve that, the group plans to expand its core business in property through high-value projects in Klang Valley as well as Penang and Johor Baru.
Low said L&G was already in talks with landowners in Penang and Johor Baru while its premium condominium Damansara Foresta in Bandar Sri Damansara would be entering its Phase 2 soon.
“We are now into a growth phase because from the late 90s to 2008, we have not been actively pursuing new development projects,” he said, “Our plantation assets and education division have been supporting us but moving forward, there will be more focus in the property segment.”
In its annual report, the group noted that it had begun positioning itself as a premium developer in the local property market through its lifestyle-centric residentials like Damansara Foresta and The Elements @Ampang as well as modern business suites 8truim in Bandar Sri Damansara.
Low said that while the group did not have a large landbank at the moment, its strategy was to develop projects on coveted land that could generate the good returns per acre.
“We do not look at the acreage but how the land we have can generate most revenue and profits,” Low said after the AGM.
That said, L&G still has 36 acres in Sungai Petani and 14 acres of industrial land in Johor undeveloped under its property division. In total, L&G has 318 acres of landbank for property development.
In the nearer future, he said the group would be working on its Tuanku Jaafar Golf and Country Resort in Negeri Sembilan, at a gross development value (GDV) of RM555mil, which was in the final stage of getting approvals.
“We hope to get the approvals within the next two months. The 200-acre project would take about five years to complete after its launch,” he said.
For the next three financial years, L&G sees its GDV at more than RM2bil from all its ongoing and new projects.
By The Star