Land & General Bhd (L&G), a mid-size real estate developer says its property development activities in Klang Valley have resumed construction works.

But work is moving at a slower pace as a result of compliance with the various Standard Operating Procedures (SOPs) imposed by the various ministries due to the Covid-19 pandemic, it said.

L&G has listed three on-going property projects on its website. They are Astoria Ampang in Ampang, Sena Parc in Senawang, and Damansara Seresta in Sri Damansara.

The group had been planning to launch development projects with a combined gross development value (GDV) of RM615 million this year.

These include the launch of two new phases of Sena Parc, phase two of Astoria Ampang and new development, Aria Rimba in Shah Alam.

Aria Rimba comprises 300 two-storey terraced houses and has a GDV of RM1.1 billion. It was expected to be launched after the group’s financial year ending March 31, 2020.

Within Bandar Sri Damansara the group had also planned to launch Phase 2 of Damansara Seresta this year.

Damansara Seresta, which overlooks the Bukit Lanjan Forest Reserve, has a GDV of about RM490 million.

The residential project has two towers of 43 and 49 storeys, with 452 apartments in total and it was first launched in 2018.

L&G said while the group’s prospects for the coming financial year ending March 31, 2021, will remain challenging, it believes that the recent short-term Economic Recovery Stimulus Package may mitigate partly some of the adverse impact of the ongoing pandemic.

These include the uplifting of 70 per cent margin financing limit for a third residential property valued at RM600,000 and above, the re-introduction of the Home Ownership Campaign (HOC), the stamp duty exemption on the first RM1 million of residential property value and the full stamp duty exemption on loan agreements in relation to sales and purchase agreements signed between June 1, 2020, to May 31, 2021.

“In view of these challenges, the group expects its results for the coming year to remain flat.”

“L&G is constantly monitoring to ensure timely and appropriate actions to be taken in line with the market changes,” it said.

Besides property development, L&G is also involved in plantation and education.

For the 12 months period under review, L&G registered a pre-tax profit of RM26.81 million (4Q2019: RM52.89 million) on the back of a revenue of RM139.72 million (4Q2019: RM134.44 million).

The property division recorded a revenue of RM116.01 million (4Q2019: RM109.76 million) and an operating profit of RM25.2 million (4Q2019: RM35.43 million) for the year.

The division’s contribution for the current year was mainly due to progress billings and sales from Astoria, Seresta, and Sena Parc.

The lower operating profit for the division was mainly due to the operating profit of the previous year included a write-back of impairment loss on car park of RM7.42 million.

Source: New Straits Times