Scientex eyes land bank expansion

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.