BIGGER PROPERTY PLAYER: Company’s market cap to double to about RM500m next week
Land & General Bhd (L&G) is repositioning itself from a mid-sized property player to a bigger developer on Bursa Malaysia via acquisition and fund-raising exercises.
The company's market capitalisation (market cap) will double to about RM500 million next week, upon conversion of its irredeemable convertible unsecured loan stocks (ICULS) into shares.
The rights ICULS will be listed and quoted on Bursa Malaysia's Main Market on Monday.
L&G launched a rights issue in April under a corporate exercise to raise RM77.8 million.
L&G managing director Low Gay Teck said the company is expanding organically by buying strategic land and developing high-end properties to improve its operating profit.
The company is also looking at growing its investment assets for recurring income, Low said.
For fiscal year 2012, L&G posted a net profit of RM57.2 million on revenue of RM216.3 million, compared with a net profit and revenue of RM33.1 million and RM130.8 million, respectively, in 2011.
Low is bullish L&G will sustain its growth record for the next three years, driven by new projects.
"The company has unbilled gross development value (GDV) and pipeline projects worth in excess of RM3 billion. We are launching Phase 2 of Damansara Foresta, comprising 452 condominium units worth about RM500 million, or more than RM700 per sq ft, by the third quarter of next year," he said.
Around the same time, it also plans to launch a resort development in Negri Sembilan.
"There are some development issues we are discussing with the local councils, which we hope to resolve soon," Low said after the company's shareholders meeting in Bandar Sri Damansara here yesterday.
He hopes there will be no further stringent guidelines introduced in the forthcoming Budget 2014 that will dampen buyers' sentiment.