Lagenda Properties Berhad has signed a Sale and Purchase Agreement to acquire 500 acres of land in Kuantan, Pahang, for a cash consideration of RM33 million through its whollyowned subsidiary, LPB Development Sdn Bhd.
Lagenda intends to undertake the land which is which is approximately RM1.51 per square feet, to create a self-sustaining and affordable township development that includes a diverse mix of affordable housing and commercial buildings such as single-story semidetached houses, single-story terrace houses, and shop offices, as well as infrastructure and a variety of facilities and public amenities.
Lagenda aims to start construction on a portion of the project by 2023, with a gross development value of around RM1 billion.
The said land is about 16 kilometres due southwest of Kuantan town centre and is easily accessible via Gambang-Kuantan Highways, which is also close to public amenities such as schools and Pusat Latihan Kejenteraan Pertanian Kuantan, Jabatan Penjara Penor, Kolej Islam Pahang, and Rumah Kanak-kanak Sultanah Hajjah Kalsom.
Managing Director of Lagenda, Jimmy Doh said, “This land acquisition represents part of our continuous efforts to increase presence in more states in Malaysia by identifying viable landbanks to deliver sustainable growth to Lagenda. This is consistent with the Group’s strategy to acquire landbank in areas with resilient demand for homes at affordable prices of below RM200,000 and is supported by infrastructure improvements in the surrounding area.”
In line with our previous land acquisitions, the cost of this land is circa 3-4 percent of the GDV, which will ensure Lagenda continues to deliver exceptional profit margins ranging between 25 percent to 30 percent.
“The next few years will be very exciting for us. We are launching our third and fourth affordable township development in Tapah and Sungai Petani by 2021 and 2022. This Kuantan project which is our fifth, will have development period of approximately 5 years, providing visibility and sustaining our earnings for the next few years,” he added.
As a result of this, Lagenda Properties will have a presence in Perak, Kedah, and Pahang, putting closer to their goal of becoming a Nationwide Affordable Township Developer.
