Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Tuesday, July 13, 2010

LBS Bina to issue RM135m sukuk to finance housing projects

PETALING JAYA: Property developer LBS BINA GROUP BHD is issuing RM135 million sukuk to part finance three projects in Malaysia, group managing director Datuk Lim Hock San said on Tuesday, July 13.

The proceeds will be utilised mainly for proposed development projects in Bandar Putera Indah in Batu Pahat, Johor, Puchong in Selangor, and Taman Royal Lily in Cameron Highlands, he said.

"The total gross development value of the three projects is RM600 million," Lim told reporters after a signing ceremony for the issuance witnessed by Housing and Local Government Minister Datuk Wira Chor Chee Heung here on Tuesday.

The sukuk will be the first private-debt Islamic securities issuance in Malaysia to be guaranteed by Danajamin Nasional Bhd, the nation's first financial guarantee insurer.

EON Bank Bhd's unit MIMB Investment Bank is the principal adviser and lead arranger for the issuance. The first tranche will be within the current month.

On the projects, Lim said the 26 units of medium-cost properties in Cameron Highlands were all sold, while the Batu Pahat project and high-end super-link three-storey properties in the D'Puchong project will be launched within 2010.

"We are confident that the units will be taken up very fast," he said.

The group has a landbank of about 930.7 hectares in Malaysia and China, which will ensure its continuous operation for the next 10 to 15 years.

Its executive director Alan Chia said with the launch of the new projects and some launches in 2009, the group aimed to return to profits in 2010 or 2011 after registering its first loss last year.

"In 2007 and 2008 we foreseen the crisis coming and therefore we did not launch any medium range product. But in 2009 we were aggressive in launching new products," he said.

Chia said in 2009 sales touched RM317 million and for this year sales had so far reached RM180 million.

"Profit of the sales will come in this year and it will be realised next year. So, we expect to break even or post a small profit this year and better profit in 2010," he said.

Lim said more projects would be launched this year amid the favourable outlook for the property market for the next two years.

"With Danajamin guarantee, the issue will be rated AAA (fg), thus allowing LBS Bina to raise funds from the sukuk market at a competitive rate, even in this risk-adverse environment," said EON Bank Group's chief executive officer Michael Lor.

By Bernama

No comments: