PETALING JAYA: AMMB Holdings Bhd's (AmBank) retail banking division will approve RM300 million end financing for Lagenda Properties Bhd to embark on its various ongoing and future projects, particularly affordable houses.
AmBank group chief executive officer Datuk Sulaiman Mohd Tahir said the loan will include the first-three phase development of Lagenda Properties new township in Teluk Intan involving 6,390 units of affordable homes.
"We are impressed by Lagenda Properties' commitment to affordable housing and are happy to support them in line with AmBank Group's efforts to continually provide optimised financing facilities that best suit the needs of our valued clients.
"We are keen to be part of their growth story and we look forward to many more opportunities for AmBank Group and Lagenda Properties to partner," he said at a press conference after exchanging documents on loan facilities and end financing deal between AmBank Group and Lagenda Properties Bhd here today.
Sulaiman said the group will remain steadfast and continue to support Lagenda Properties, specifically on affordable house schemes and hopeful maintain its position as Lagenda's primary financing partner.
"We are looking to expand our facilities to Lagenda's business partners including their contractors and suppliers with our working capital and contract financing facilities," he added.
Lagenda Properties managing director Datuk Jimmy Doh Jee Ming said AmBank Group's confidence in the company's affordable township development reflected its capabilities and expertise in undertaking such large township projects.
"The financing facilities will enable us to help meet the high demand for affordable homes which many Malaysians are looking for, while at the same time helping the government to resolve a nationwide affordable housing issue in Malaysia," he said.
Doh said Lagenda Properties' unique business model allowed them to sell up to 30 per cent below the nearest comparable houses (pricing less than RM200,000) while maintaining a double-digit (net profit) margin for the group.
"We will continue to create more townships that are affordable and to grow Lagenda Properties. Concurrently, we will continue to explore complimenting business opportunities to further augment our market presence throughout Malaysia," said Doh.
To date, AmBank had approved a total of RM480 million loan facility including the recent facility amounted to RM150 million to Lagenda Properties.
With the acquisition of three companies - Blossom Eastland Sdn Bhd, Rantau Urusan (M) Sdn Bhd and Yik Wang Trading Sdn Bhd completed on August 12, 2020, Lagenda Properties had scaled up significantly with a remaining aggregate gross development value of about RM2.1 billion, unbilled sales of RM532 million with a sizeable land bank of 1,200-acre to be developed.
Lagenda Properties currently has two major affordable housing township projects - Bandar Baru Setia Awan Perdana and Lagenda Teluk Intan in Perak.
Doh said the supply or lack of affordable housing is particularly severe among B40 income earners and individuals earning less than RM4,000 in various states of Malaysia.
According to Bank Negara Malaysia, the forecasted shortage in affordable homes is expected to reach one million units by 2020.
"There is a significant mismatch between the demand and supply in terms of pricing in the affordable housing segment in Malaysia, especially for houses below RM250,000.
"It is our mission to fill this segment and making homeownership affordable for all Malaysians while helping the government solve a nationwide affordable housing crisis," he added.