LBI Capital buys more land to ramp-up its development activities

LBI Capital Bhd will undertake a property project in Kuala Langat, Selangor to enhance its development activities.

The group’s wholly-owned subsidiary companies namely, Goldmount Resources Sdn Bhd, Indamont Development Sdn Bhd, and Triple Equity Sdn Bhd are buying 12 parcels of land measuring a total of 12.94 acres in Pekan Jenjarom from Utuh Aspirasi Sdn Bhd (UASB).

UASB, which has on-going development activities is an indirect wholly-owned subsidiary of LBS Bina Group Bhd.

One of the directors of UASB is LBS Bina founder, Tan Sri Lim Hock San.

UASB is selling the 12 parcels of land to the three LBI units for RM10.14 million collectively.

LBI said in a filing with Bursa Malaysia that Goldmount Resources, Indamont Development, and Triple Equity had on October 19, 2020, entered into 12 separate Sale and Purchase agreements (SPA) with UASB to acquire the land parcels

LBI said the acquisition will increase the development land of the group and contribute higher earnings in the future.

The land, currently agriculture status, is accessible from Klang via Jalan Klang Banting and Lorong Sentosa in Jenjarom and located in an area where there is good potential development, the group said.

Listed on LBI’s website are several on-going property development projects such as Midhills at Genting Highlands (Pahang), Amanjaya comprising 13 bungalow lots in Seksyen 14, Petaling Jaya, and Taman Permai, Klang, both in Selangor.

Future projects include shop lots in Tebrau, Johor, and development in Melaka.

In the first quarter ended June 30, 2020, LBI registered lower revenue of RM2.3 million compared with RM14.0 million for the previous corresponding quarter in 2019.

LBI said this was due to lower contributions of its Midhills joint venture project and Sungai Jati Permai, Klang.

Consequently, the group reported a lower pre-tax profit of RM3.2 million as compared to a pre-tax profit of RM5.6 million for the corresponding period last year.

LBI expects the group’s performance in the current year to be challenging due to the negative impact of the Covid-19 pandemic, which has and will continue to have a severe impact on the country’s economic growth, employment, investment, and consumption.

“The management will remain prudent in managing these challenges and constantly reviewing its project launches,” it said.

LBI said it will prioritise liquidity over profitability in such a market environment.

Source: NST