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Tuesday, July 1, 2008

LBS to diversify into industrial property

PETALING JAYA: LBS Bina Group Bhd plans to diversify into industrial property development in Puchong to overcome a softer residential property market this year.

Group managing director Datuk Lim Hock San said demand was still intact for industrial properties and the Puchong project, with an initial gross development value of RM100mil, would take two years to complete.

“We plan to launch 50 semi-detached factories in Puchong. It (each factory) would have a land area of about 7,500 sq ft and built-up area of 4,000 sq ft,” he said after the company AGM yesterday.

In the past two years, he said LBS had reined in its property launches as the surge in raw material prices had affected construction costs.

“We are lucky we did not launch so many projects,” Lim said, adding that LBS planned to sell some of its land and focus on the Klang Valley property projects on a small-scale only.

This year, LBS would continue to be cautious due to soaring raw material prices while contractors were seeking price revisions, he said. For instance, LBS had decided to hold back the commercial shops launch in Bandar Saujana Putra, but this would be reviewed in one to two months.

However, Lim was upbeat on its China property development project, via recently acquired Lamdeal Golf and Country Club Ltd (HK), which owns and operates the Lakewood Golf Club in Zuhai, China.

“We are planning to have a hotel at the golf resort,” he said.

LBS was also exploring a plan to venture into agriculture exports even though the returns might not be that high compared with property development. Lim did not provide details.

While Lim described the current property market as “matured”, he expected it to be boosted by the Government's planned spending following the Ninth Malaysian Plan's mid-term review.

By The Star

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