KUALA LUMPUR (Sept 22): Land & General Bhd (KL:L&G) plans to launch the first phase of its Lembah Beringin industrial park in Selangor in the first quarter of next year, with an estimated gross development value (GDV) of RM1.5 billion.

The first phase of the project, which marks the property developer's expansion into the industrial segment, covers 240 acres of the group's 2,500-acre land bank in Lembah Beringin.

Managing director Low Gay Teck said pre-launch marketing activities are already under way, while rezoning approval has been secured and is currently awaiting gazettement. The group will subsequently submit its detailed development plans.

“We are doing our pre-marketing as we speak. We have started engaging with industrialists and investors,” Low told reporters after the group’s annual general meeting on Tuesday.

The industrial park will feature diverse formats, including semi-detached and detached factories, as well as vacant plots. The group is also open to land-leasing arrangements, depending on investor requirements.

Low said the group has received strong interest from automotive-related businesses, driven by the site's location within an established automotive industrial cluster. It is near Proton's manufacturing base in Tanjung Malim and an adjoining facility operated by Chinese automobile manufacturer Chery.  

Beyond automotive players, the group has drawn interest from semiconductor and data centre players. However, Low noted that projects in these sectors would require separate regulatory submissions and approvals due to their heavy water and electricity requirements.

L&G plans to allocate about RM200 million for earthworks and infrastructure, including water, electricity and gas. The capital expenditure will be financed via a combination of internal funds and borrowings.

Despite the upfront outlay, Low expects the project to deliver “attractive margins”, as the land has been held for about 30 years and carries a low historical book cost.

Financial contributions from the project are projected to begin in the financial ending March 31, 2028 (FY2028), Low said.

In the meantime, the group is also planning a six-storey stratified industrial complex on a 13.6-acre site in Tampoi, Johor. Phase 1 of the project will involve about six acres, with an estimated GDV of RM500 million.

The group remains optimistic on its prospects for FY2027, supported by RM513 million in unbilled property sales as at end-June, which provides revenue visibility over the next two years.

“So far, we did well in the first quarter. I think things are progressing very optimistically at this point,” Low said, adding that rising building material costs have not impacted the group's ongoing projects because several developments are already at advanced stages and existing contracts were locked in on a fixed-price basis.

Meanwhile, despite broader macroeconomic pressures and political uncertainties, Low reported no slowdown in property sales, with weekly bookings remaining encouraging.

He noted that the group's residential offerings cater largely to owner-occupiers within the mid- to upper-mid-market segments.

For FY2026, L&G posted a net profit of RM50.46 million on a revenue of RM490.52 million, marking its highest annual earnings since FY2018, as well as its best top line since FY2014.

That momentum carried into 1QFY2027, with the group recording a net profit of RM21.52 million, up 88.7% from RM11.4 million in 1QFY2026, as revenue jumped 61.5% to RM159 million from RM98.46 million, lifted by an improved performance of its property and education segments.

L&G operates both the Sri Bestari Private School and Sri Bestari International School.

The group's shares closed unchanged at 20.5 sen on Tuesday, giving it a market capitalisation of RM609.49 million.