Director's Managing
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Managing Director's review of group operations Dear Valued Shareholders, These are being carried out by the Group’s core subsidiary I am pleased to present to you my second operation review. group namely LBS Bina Holdings Sdn Bhd (“LBS”). Demand When I presented my first review last year, the Group had for all our property launches has been buoyant and good sales just been listed and the property sector was at its height were recorded during the financial year under review. This is since the 1997 financial crisis. I am pleased to say that largely attributed to our product strategy that emphasize on despite some hitches during the year under review, location, wide range of products, quality and most importantly, Malaysian economy continued its growth in tandem with the affordable pricing supported by attractive mortgage financing positive consumer confidence. The Group has been able to packages offered by financial institutions. seize the opportunities and was able to register another impressive financial result for the year under review. In addition to the Property Division, the Group also has a Trading Division which includes the dealership of Perodua BUSINESS ACTIVITIES vehicles and trading in building materials, via the Group’s wholly-owned subsidiaries, Bandar Sakti Sdn Bhd ("Bandar Property development and Sakti") and Saga Megah Sdn Bhd ("Saga Megah") respectively. property investment would still remain as the main During the year, the Group has also ventured into the business business activities of the of providing Smart Home Systems to residential houses with Group. the acquisition of LBS Intech Sdn Bhd (formerly known as Technigreat Sdn Bhd). Besides the Property and Trading Division, the Group is also involved in other businesses namely contructions (via MITC Sdn Bhd) and insurance (via Saga Serata Sdn Bhd) ("Saga Serata"), PROPERTY DEVELOPMENT DIVISION For the year under review, the property development division contributed RM220.3 million in turnover and RM55.1 million in profit before taxation. During the year under review, the Group has completed and handed over 2,776 units properties which cumulatively worth approximately RM319.0 million. LBS BINA GROUP BERHAD (518482-H) • ANNUAL REPORT 2002 9 Current Projects Bandar Saujana Putra a Township project next to Putra Heights, USJ The group has entered into three separate joint venture (“JV”) agreements with Permodalan Negeri Selangor Berhad (PNSB) to develop PNSB’s several parcels of adjacent land with a combined total area of approximately 820 acres. These parcels of land, with leasehold tenure of 99 years, are strategically situated next to the ELITE Highway, south and contiguous to Putra Heights (currently under development by SIME UEP) in the Mukim of Tanjung Dua Belas, District of Kuala Langat, Selangor. The township project is easily accessible through excellent network of highways linking the neighbouring developments with Putrajaya and Cyberjaya. The planned development comprises of more than 12,000 units of apartment, double storey terrace houses, semi- detached and detached houses, shops and commercial development. This project was launched in February 2003 when a total of 240 units low-medium cost apartment was offered to the public. This launch has enjoyed brisk sales as more than 80% sales was recorded as at 31 March 2003. Bandar Saujana Putra - Medium Cost Apartments Taman Pinggiran Putra Taman Pinggiran Putra (“TPP”) is developed on a piece of 99-years leasehold land (expiring 2098) measuring approximately 190 acres through joint venture basis. TPP, a mixed development project, is strategically located in Serdang-Puchong corridor, offering easy access to Seremban-Melaka Highways, about 5 km from Seri Kembangan town and 20 km south of Kuala Lumpur city within the Multimedia Super Corridor, near University Putra Malaysia, Equine Park and Taman Lestari Perdana. It is also close to Universiti Putra Malaysia and Universiti Tenaga Malaysia. The whole project comprises a mixed development of more than 5,160 units of shop-apartments, apartments, highrise apartments with condo facilities (Vista Pinggiran), single-storey and double-storey terrace houses, semi-detached and detached houses. The remaining phases of the project covering approximately Taman Pinggiran Putra - Semi-D Houses 53 acres will comprise terrace houses, semi-detached houses, a pitch and putt golf course, commercial sites and a shopping complex and they will be launched progressively in future phase. 10 LBS BINA GROUP BERHAD (518482-H) • ANNUAL REPORT 2002 Current Projects Taman Balakong Jaya Taman Balakong Jaya is developed on two adjacent 99-year leasehold lands (expiring in the year 2095) measuring approximately 87 acres in size. This project is located in Balakong, Selangor. The entire development comprises more than 2,400 units of shop-apartments, apartments, single and double-storey terrace houses, shop houses, light industrial lots and terrace light industrial factories. The project was first launched in January 2000. As at 31 March 2003, a total of 1,525 units have been launched with more than 95% sales was recorded. Taman Balakong Jaya - 2 Storey Link Houses Taman Kota Perdana Taman Kota Perdana is developed on two parcels of adjacent land with a combined total are of approximately 157 acres in size. The project is located opposite Taman Pinggiran Putra project and Pasar Borong Selangor in the Serdang-Puchong corridor. Like Taman Pinggiran Putra, the project is strategically located with close proximity to University Putra Malaysia and University Tenaga, and the nation’s new Government administrative center. The entire development (for both parcels of land) comprises more than 2,900 units of shop-apartments, apartmemts, single and double-storey terrace houses, semi-detached and detached houses. The project was first launched in November 2000. As at 31 March 2003, more than 1,900 units comprises various mix have been launched, and the project has enjoyed brisk sales. Taman Kota Perdana - 2 Storey Terrace Houses Taman Puteri Impian Bandar Damansara, Petaling Jaya In January 2002, the Group launched the Taman Puteri Impian project in Bandar Damansara, Petaling Jaya. This is one of the first two JV projects with Tropicana Golf and Country Resort Bhd to develop on a leasehold land measuring approximately 11.3 acreas. The development comprises of 1,644 units of low, medium-low and highrise apartment (Bayu Puteri Apartment), and is located besides the North Klang Valley Expressway and near the Lebuh Damansara-Puchong (“LDP”). As at 31 March 2003, 88% of the total of 1,449 units launched were sold. Taman Puteri Impian - Medium-Low Apartments LBS BINA GROUP BERHAD (518482-H) • ANNUAL REPORT 2002 11 Current Casa Projects Tropicana Bandar Damansara, Petaling Jaya In addition to the Taman Puteri Impian project, the Group has also entered into a second JV agreement with Tropicana Golf and Country Resort Bhd, for the development of Casa Tropicana Condominium, comprises of 1,217 units of highrise luxurious condominium. Casa Tropicana will be developed on a leasehold land measuring approximately 8.2 acres, located next to Tropicana Golf and Country Club, Petaling Jaya. Phase 1 of the project comprises of 357 units was launched in March 2003 which registered a sales of 32% within a week. Casa Tropicana - Condominiums Pangsapuri SS 9 , Petaling Jaya Seri Setia Pangsapuri Seri Setia project comprises of a 17 storey medium cost apartment with 164 units of apartments equipped with car parks and a swimming pool. This is a JV project with Majlis Perbandaran Petaling Jaya. This project will be developed on a piece of leasehold land located in SS9A Petaling Jaya measuring approximately 1.0 acres. It was launched in February 2002. As at 31 March 2003, 55% of the units launched were sold. Pangsapuri Seri Setia - Medium Cost Apartments Bandar a new township to Batu Pahat, Johor Putera Indah The Group has entered into several JV agreements and project management agreement with Jasa Vista Sdn Bhd (JVSB) to jointly develop and manage JVSB’s freehold land with a total area of 1,288 acres. This project is the first fully integrated township in Batu Pahat and is strategically located 7 km from Batu Pahat township and is easily accessible to neighboring township such as Yong Peng, Muar and the North-South Expressway (PLUS). The self-contained township has been planned to cater for all walks of life, contains 23 phases and comprises of more than 12,000 units of residential, commercial and amenities; such as shopping complex, medical center, schools, college, club house, sports and recreational centre. In October 2002, the first phase comprising 277 units single storey terrace houses with a minimum selling price of RM99,000 was launched. As at 31 March 2003, 233 units were sold and this translates an 84% sales. The second launch is in February 2003, a total of 100 units single-storey semi-detached houses were offered to the public and as at 31 March 2003, 89 units were sold. Bandar Putera Indah - Single Storey Terrace House Bandar Putera Indah - Single Storey Semi-Detached 12 LBS BINA GROUP BERHAD (518482-H) • ANNUAL REPORT 2002 Current Projects Puncak Jelapang Maju - Single Storey Houses Puncak Jelapang Maju - 2 Storey Houses Jelapang Maju Light Industrial Park Puncak Ipoh Jelapang Maju Puncak Jelapang Maju is a residential and commercial development on several parcels of adjacent lands with combined land area measured at approximately 192 acres. The project is strategically located in Jelapang, Ipoh, Perak, which is a mixed residential and commercial area. It is located along the Ipoh-Lumut Highway and is also close to the Jelapang Interchange of the North-South Highway. The whole development comprises of more than 1,700 units of low cost flats, single-storey and double-storey terrace houses, semi- detached and detached houses, bunglow lots, shop and commercial development. The project was first launched in March 1998. As at 31 March 2003, more than 750 units or 88% out of the total 850 units of houses and bungalows launched were sold.