Lagenda Properties (LAGENDA): Affordable Housing Leader Rising Above Market Challenges

 

Lagenda Properties (LAGENDA) continues to strengthen its position as Malaysia’s leader in affordable housing, with strategic management moves and a focus on launching new projects. The company has fortified its management team, launched record-breaking projects, and is gearing up for a significant boost in sales with its upcoming developments. Coupled with potential benefits from the government’s proposed Budget 2025 initiatives, Lagenda is well-positioned to sustain its growth trajectory.

Strengthening Management Amid Crisis

Lagenda has enhanced its management team following an investigation involving a senior personnel. The company appointed Koong Wai Seng as Executive Director and Loh Lai Pui as Chief Financial Officer, both industry veterans with extensive experience in finance and property development. These strategic additions signal Lagenda’s commitment to safeguarding its operations and ensuring the company is equipped to navigate future challenges.

Impressive Sales Performance and Strong Project Pipeline

Despite recent headwinds, Lagenda’s share price has shown a recovery, climbing about 12% in recent months to RM1.37. The company recorded a remarkable quarterly sales figure of RM297 million in 2Q24, driven primarily by the success of its Lagenda Ardea project in Selangor, which achieved a 99% take-up rate. This success highlights the market’s robust demand for Lagenda’s affordable housing offerings.

Notably, over 50% of its 1H24 sales came from projects outside of Perak, especially in Johor, through developments like Puncak Warisan and Lagenda Suria. As of May 2024, the company had approximately RM500 million in sales bookings, indicating a solid pipeline for 3Q24. With the current momentum, Lagenda is on track to exceed its RM1.2 billion sales target for the year.

Looking forward to 2025, Lagenda expects even stronger sales performance, fueled by projects launched in 2024 that are projected to contribute significantly to earnings in 2026. The company’s strategy of launching projects 2.6 times the size of those in 2023 reflects its ambitious growth plans. UOB Kay Hian forecasts a three-year revenue and earnings compound annual growth rate (CAGR) of 27% and 28%, respectively—the highest among its property developer peers.

Upcoming Projects: All Eyes on Kulai

Lagenda is gearing up for two significant launches in the second half of 2024: a township in Kulai, Johor, featuring 2,000 single-storey landed homes priced between RM260,000 and RM280,000, and Lagenda Ardea Phase 2 in Selangor, offering 800 units. The company expects the Kulai project to sell out quickly due to its attractive pricing, and this project is generating considerable market excitement.

The company’s total landbank in Kulai spans approximately 1,000 acres, substantially larger than Eco World’s 400-acre landbank and second only to IOI Properties Group’s 3,418 acres. Kulai’s growing popularity, fueled by rising inquiries from data centers and recent land sales to major players like Microsoft and Princeton Digital, positions Lagenda to benefit from potential future land sales. The company’s readiness to consider land sales in the region further underscores its strategic flexibility and market savvy.

Benefiting from Budget 2025 and Government Initiatives

Lagenda stands to gain significantly from the Malaysian government’s proposed Budget 2025 initiatives, particularly the Madani Deposit Scheme, which offers up to RM30,000 in deposit assistance for first-time homebuyers in the B40 and lower M40 income groups. This scheme aims to alleviate affordability issues by reducing upfront costs, which could directly benefit Lagenda, as its target market predominantly comprises these income groups.

Moreover, the upcoming civil servant salary adjustments, scheduled for December 2024 and January 2026, are expected to boost disposable income for lower-grade civil servants. Currently, around 60% of Lagenda’s buyers are civil servants, and the salary hikes will potentially expand the company’s customer base, further driving sales growth.

Financial Position and Outlook

Lagenda’s balance sheet remains robust, with net gearing at 0.43x, expected to rise to 0.51x following the acquisition of an 855-acre site in Sungai Petani, Kedah. The company continues to adopt a prudent approach to debt management, leveraging joint ventures to expand its development footprint.

The company reported strong financials, with an EBITDA of RM238 million in 2023, projected to increase to RM329 million in 2024 and further to RM523 million by 2026. Its earnings per share (EPS) is forecasted to reach 24.4 sen in 2024, rising to 38.4 sen by 2026, indicating a healthy growth outlook. Lagenda is also anticipated to offer an attractive dividend yield of 5.3% in 2024, which could increase to 7.0% by 2026.

https://www.minichart.com.sg/2024/10/07/lagenda-properties-lagenda-affordable-housing-leader-rising-above-market-challenges/

Lagenda Properties: 282 units of landed homes sold out within days of launch

 

Sungai Petani, 16 December 2022 – Leading specialists in developing and regenerating land for affordable housing, Lagenda Properties Berhad in partnership with Bina Darulaman Berhad has now made it possible for young people to buy and own their first home. The first phase of the Darulaman Lagenda township, consisting of 282 units of affordable landed homes, was completely sold out in a matter of days after its launch. The strong demand was backed by overwhelming support from the younger generations, with sales data indicating that 53% of purchasers were aged between 20 to 30 years old while 41% of buyers were from the 31 to 40 age group.

With prices starting from RM200,000 per unit for Phase 1, Darulaman Lagenda, the largest affordable township in Kedah, consists of landed homes with attractive features, some of which are its seamless connectivity via the North South Expressway (PLUS), close proximity to healthcare facilities including Pantai Hospital Sungai Petani and Hospital Sultan Abdul Halim, an array of convenient super and hypermarkets, shopping malls, and being surrounded by educational institutions from preschool to secondary levels including, SK Sungai Lalang, SMK Aman Jaya and Regent International School, making it the perfect location for generational living.

“Home ownership has been a constant challenge, and we see more and more people struggling to afford a home to call their own. This is why in developing our homes, we do our utmost to ensure that the lower to mid-level income groups can afford them. This is evident in the quick take-up for Phase 1 of Darulaman Lagenda and the demographics of our buyers. For example, 73% of our buyers were from Kedah and Pulau Pinang, 80% were government servants, and 97% were Bumiputera. Given that Phase 1 sold out in less than a week, we are confident that we are making progress in at least mitigating somewhat the affordability crisis in the area,” stated Managing Director of Lagenda, Dato Jimmy Doh.

How Lagenda Properties is Shaping Affordable Housing in Malaysia

 

Lagenda Properties was founded in the year 2016 and has grown to become a reliable company in the Malaysian real estate sector in providing affordable housing for the country. Listed in the Main Market of Bursa Malaysia Securities Berhad, embraces its corporate mission to build self-sustainable townships with an emphasis on the provision of facilities and amenities for the use of the public. This not only satisfies the housing requirements of the homebuyers that include the B40 and M40 categories of income groups but also creates ownership among the residents.

The current investigation of Lagenda Properties by the Malaysian Anti-Corruption Commission (MACC) has put a focus on the company’s activities and ethical practices in the terrain of property development. It is important to note that these investigations are serious, they are aimed at a greater cause of ensuring accountability and transparency in the sector. They have always sought to uphold the highest ethical standards and this is demonstrated by their commitment to responsible land banking practices, and sustainable development strategies.

Following the probe into Lagenda Properties, the firm has pledged its readiness to assist the MACC to the fullest extent. This initiative, proactivity in other words, illustrates openness and strengthens stakeholders, investors, and homebuyers’ trust in the brand. Given the high level of professionalism required in the real estate industry, the focus on ethical behaviour and compliance with the law is very important.

The company has distinguished itself from its rivals due to its creative strategies in the provision of low-cost housing. To ensure that residents are catered for in terms of key services like schools, healthcare centers, and recreational areas, the firm constructs self-sustaining towns. By improving the quality of life for its residents, this all-inclusive community development framework aims to attract prospective homeowners.

https://medium.com/@harshitajan01/how-lagenda-properties-is-shaping-affordable-housing-in-malaysia-29640cdeeca4

Exploring the Best of Lagenda Properties’ Projects: From Teluk Intan to Setia Awan Perdana

 

Lagenda Properties is changing the game for affordable housing developments in Malaysia with its creative and innovative design and planning. From north to down south, Lagenda Properties has been working toward its goal of building communities that are affordable for all types of homeowners. This blog discusses two of the most prestigious and successful projects by Lagenda Properties: Lagenda Teluk Intan and Bandar Baru Setia Awan Perdana — we take a closer look into what really makes these developments stand out in the Malaysian property market.

Lagenda Teluk Intan: Building a Thriving Northern Hub

Located in the heart of Perak is Lagenda Teluk Intan, a shining example of how Lagenda Properties is dynamic in changing communities in the northern region of Malaysia. The purpose of the project is to develop affordable housing for Malaysians who dream of owning a home without a huge financial burden. Strategically cocooned in Lagenda Teluk Intan, convenience with only a stone’s throw away from key living essentials such as schools, healthcare facilities, retail hubs, and transport links is assured.

With dynamic urban infrastructure, this township has been created with the determination to enjoy a complete living experience in a great sense of community. The homes built here are made using high-quality materials and innovative designs to offer comfortable living spaces for young families as well as retirees or first-time property buyers.

Another aspect that this development boasts of is sustainability. Green parks, pedestrian walkways, and energy-efficient homes make Lagenda Teluk Intan not only affordable but eco-conscious with respect to the environment. They embody, without sacrificing quality or aesthetics, Lagenda Properties’ commitment to creating homes that are both functional and sustainable.

Bandar Baru Setia Awan Perdana: The Jewel of Affordable Urban Living

Another notable project in southern Malaysia is Bandar Baru Setia Awan Perdana, which was developed by Lagenda Properties. This township in the state of Perak offers a township going concept that aims an affordable urban haven for those who wish to live in a connected modern environment. Offering a variety of homes from single-storey to multi-storey, it caters to the various needs of customers.

Its comprehensive and integrated community is what Bandar Baru Setia Awan Perdana stands for. With its well-modernized houses, wide roads, and green space, this is the type of development that will fit any family who would want a quiet place without being too far from what urban living has to offer. The project also has great proximity to schools, health care services, shopping centres, and entertainment facilities to fulfill every young working professional and young family’s needs.

This type of planning incorporates features of the development such as recreational parks, playgrounds, and walking paths, where residents would find themselves in a tranquil earth-filled environment while easily being within the city. So it cannot get any better than just being at home; it is also a community where families can grow, socialize, and flourish.

Why Lagenda Properties?

Lagenda Teluk Intan and Bandar Baru Setia Awan Perdana are two of the offerings from Lagenda Properties’ commitment to providing affordable, quality housing for all Malaysians. As a manufacturer, it prides itself on every project for creating sustainable ecosystems for its residents that care equally for the environment and people. All of these homes are developed by them to cater to a diverse demography, and these homes are affordable while being very quality in nature.

These are not just construction projects but community development. The buildings are arranged in such a way that they can observe everything in round-the-clock access, green living, and innovation, all of which continue to make them a trailblazer within Malaysia’s affordable housing space.

Conclusion

From the idyllic landscapes of Lagenda Teluk Intan to the modern conveniences of Bandar Baru Setia Awan Perdana, Lagenda Properties provides a unique combination of affordability, functionality, and sustainability. These developments are a further imprint on the hands of the company in making the future of Malaysian housing. Whether for a first-time buyer or just looking to invest in a vibrant community, Lagenda Properties is redefining affordable urban living one project at a time.

From Affordable Townships to CSR Excellence: The Rise of Lagenda Properties

 Lagenda Properties is a leading property developer in Malaysia, due to recognition in the country for its consistent dedication to making housing affordable while upholding the corporate social responsibility (CSR) services values. In line with the aspiration to make homeownership possible for every Malaysian, Lagenda Properties has not only developed impressive residential townships but also made great inroads into sustainability and the nurturing of the communities.

Pioneering Affordable Housing Solutions

Lagenda Properties’ success can be attributed to one fundamental principle: a passion for building affordable townships. Projects such as Bandar Baru Setia Awan Perdana and Lagenda Teluk Intan have enabled the company to offer quality housing to the middle- and lower-income segments of society. These townships include provision for modern infrastructures, and sufficient amenities, as well as putting emphasis on creating lasting communities.

A hallmark of their developments is the incorporation of the general planning of the townships. People get not only low-cost housing, but also amenities such as parks, schools, hospitals, and commercial buildings. This cohesive way ensures that the residents live in a comfortable way while also creating a community.

Recognition for Excellence

Lagenda Properties prides itself on its efforts of excellence, and such spirit has never gone to waste. The firm has received several significant accolades which show its influence on the property development industry:

• The Edge Billion Ringgit Club Awards 2023: Honoured for three years in a row with the highest growth in net profit and return on equity in the below RM 3 billion property regions.

• StarProperty Awards 2023 - The Government-Assisted Homes Award: Awarded for projects such as Bandar Baru Setia Awan Perdana Phase 1D and Lagenda Teluk Intan Phase 1, which are excellent examples of successful national homeownership programs.

• The Edge Malaysia Property Excellence Awards 2022: Recognized for its outstanding performance in providing low-cost urban housing, establishing itself as a prominent player in this domain.

  
  

CSR Excellence: Beyond Property Development

Despite its remarkable accomplishments in property development, the organization is also known for its numerous CSR initiatives. The community-driven initiatives by the company illustrate the organization’s core value of giving back to society and ensuring everlasting advantages to the residents.

In light of these achievements, they have answered, earned the hearts of many people, for the Most Heart-Warming CSR Initiative Award at the StarProperty Awards 2022 and also been given special CSR and ESG (Environmental, Social, and Governance) Awards from the PropertyGuru Asia Awards Malaysia with iProperty. These awards further illustrate the company's dedication towards the environment and society.

A Vision for the Future

Their journey is still long ahead. As the company keeps on innovating, it widens its portfolio with green initiatives that correspond to Malaysia's changing housing demands. In fixing the problem of affordability and community building and an unwavering focus on CSR, they are keen on changing the property development landscape in Malaysia.

Conclusion

Lagenda Properties has risen from constructing low-cost housing estates to setting standards in corporate social responsibility. It clearly shows the vision, strategic planning, and hard work of the management team. The company has been able to concentrate on meeting the housing demands of Malaysian families and ensuring the improvement of the community, the different outlook in success in the real estate industry. As they grow, it remains a source of optimism for affordable housing and sustainable development in Malaysia.