KUALA LUMPUR: Lagenda Properties Bhd, via its wholly-owned LPB Development Sdn Bhd, is acquiring a 202.34 hectare land in Kuantan, Pahang for RM33 million.
The company intends to undertake a self-sustainable township development that offers a diverse mix of affordable housing and commercial buildings.
The estimated gross development value (GDV) is RM1 billion, and construction works are expected to start by 2023.
Lagenda managing director Datuk Jimmy Doh said the acquisition represented part of its continuous efforts to increase presence in more states in Malaysia by identifying viable landbanks for sustainable growth.
"This is consistent with Lagenda's strategy to acquire landbanks 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 three to four per cent of the GDV, which will ensure Lagenda continue to deliver profit margins ranging between 25 per cent and 30 per cent," he said.
The company is launching its third and fourth affordable township development in Tapah and Sungai Petani by 2021 and 2022.
"This Kuantan project, which is our fifth, will have a development period of five years, providing visibility and sustaining our earnings for the next few years.
"With this, we will have a presence in Perak, Kedah and Pahang and on our way to achieve our vision of being a nationwide affordable township developer," he added.