Scien­tex eyes land bank ex­pan­sion

The Star Malaysia - StarBiz - - News - By TENNIELLE CHUA star­biz@thes­

KUALA LUMPUR: Scien­tex Bhd, a global pack­ag­ing man­u­fac­turer and prop­erty de­vel­oper, aims to ex­pand its land bank as it aims to de­liver 50,000 af­ford­able homes by 2028.

“Based on the new land banks that we have ac­quired, we think the 3,300 units per year is a re­al­is­tic goal.

“The de­mand for af­ford­able homes would be there, as far as the price is af­ford­able. Our def­i­ni­tion for af­ford­able homes is below RM500,000,” said Scien­tex group man­ag­ing di­rec­tor Lim Peng Jin.

“But what we have done in the past is more than that, as around 70% of the houses we have de­vel­oped are priced less than RM200,000,” he said.

Scien­tex cur­rently has 3,300 acres of land bank across four states, namely Jo­hor, Perak, Se­lan­gor and Me­laka.

The af­ford­able price tag that the group states is that 75% of these units were priced below RM300,000, while the re­main­ing units were priced be­tween RM300,000 and RM500,000.

Speak­ing at a press con­fer­ence af­ter the launch of ‘Scien­tex Vi­sion to Build 50,000 Af­ford­able Homes by 2028’, Lim said that the crowd­fund­ing ef­fort re­cently re­vealed by the gov­ern­ment -- ti­tled ‘ Fund My Home’ would be con­sid­ered by the group.

“The scheme is still quite new and we want to en­sure a cer­tain com­mit­ment to the in­vestors for the 5% re­turn and how we would en­sure the guar­an­tee.

“Nev­er­the­less, ev­ery­one should come to­gether to help the new buy­ers. We are not in the scheme yet but we are mon­i­tor­ing it for the fu­ture,” he said.

Scien­tex has also made it­self pro­fi­cient in the us­age of IBS (in­dus­tri­alised busi­ness sys­tem) where the de­signs are stan­dard­ised and can be used for most of the houses.

“For the vol­ume (we have), we can fully uti­lize the IBS sys­tem. We have built the skill with our own know-how in us­ing this sys­tem.”

The group cur­rently has 17,500 units com­pleted at the present.

These units have a take up rate of, “around 98-99%,” with prices below RM500,000.

Some 11,000 out of the units are priced less than RM200,000.

The group pre­vi­ously recorded its strong­est ever fi­nan­cial per­for­mance for its fourth quar­ter full year end­ing in July 31, 2018.

For the full 2018 fi­nan­cial year, Scien­tex posted a net profit of RM289.8mil from RM255.9mil in the pre­vi­ous fi­nan­cial year. Rev­enue for last year was RM2.6bil. Scien­tex’s 2028 vi­sion also states that the group in­tends to achieve RM10­bil in rev­enue with 20% from prop­erty de­vel­op­ment.

“For our prop­erty sec­tor, we plan 3,300 units per year and we plan to dou­ble that to 5000-6,000 at around RM400,000 per unit, av­er­ag­ing on 10 years (in line with the 2028 vi­sion).

“Of course, things would change and we are ac­tively look­ing for op­por­tu­ni­ties - lo­cal or in­ter­na­tional,” Lim said.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.