It pays RM28.5mil for parcels in Kulai to build affordable residential homes

Scientex Bhd has bought two parcels of freehold land in Kulai, Johor, from Pine Plantation Sdn Bhd for RM28.5mil, bringing its total undeveloped landbank to 415ha.

Of its total landbank, 373ha are located within Iskandar Malaysia in Senai, Skudai, Kulai and Pasir Gudang, while the remainder 42ha are located in Malacca.

Scientex plans to build affordable residential homes on the two lands, which measure a total of 19.59ha. The lands are only 1km from Kulai town as well as a major shopping mall. It is within 2km to the North South Highway via the Kulai toll plaza.

“Even before this new acquisition, our landbank was sufficient to sustain the group for the next 10 years. We have a pipeline gross development value (GDV) of RM4.6bil, comprising high-end and affordable residential properties, as well as commercial and industrial product offerings,” said managing director Lim Peng Jin in a statement.

Scientex is currently undertaking projects worth some RM836mil in GDV on its lands in Pasir Gudang, Kulai, Skudai, Senai and Malacca.

The industrial packaging manufacturer and property developer intends to launch projects worth RM600mil in GDV in the financial year ending July 31, 2014 (FY14).

“Scientex is no stranger in the Kulai property market, having developed affordable housing in our 102ha Taman Scientex Kulai since 2008. With Iskandar Malaysia’s growing proposition as a thriving business and commercial hub, it has continued to attract much attention from property buyers in Malaysia and the region. Therefore, we opine that Kulai is now more receptive of innovative property concepts,” added Lim.

The company intends to fund the acquisition through internal funds.

For FY13, revenue from its property development division stood at RM310mil, representing about 25% of its total revenue of RM1.2bil.

As at the end-FY013, Scientex’s unbilled sales stood at RM307.8mil, which would be recognised over the next two to three years.