AmBank Group has inked loan facilities and end financing deal with Lagenda Properties Berhad, formerly known as D.B.E. Gurney Resources Berhad.
Sulaiman Mohd Tahir, Group Chief Executive Officer, AmBank Group, said, “We are impressed by Lagenda Properties Berhad’s commitment to affordable housing and are happy to support them in line with AmBank Group’s efforts to continually provide optimised financing facilities that best suit the needs of our valued clients. We are keen to be part of their growth story and we look forward to many more opportunities for AmBank Group and Lagenda Properties Berhad to partner.”
“Today’s official exchange of financing facilities documents will enable us to help meet the high demand for affordable homes which many Malaysians are looking for, while at the same time helping the government to resolve a nationwide affordable housing issue in Malaysia. Furthermore, our unique business model allows us to sell up to 30% below the nearest comparable houses (pricing less than RM200,000) while maintaining a double-digit (profit after tax) margin for the Lagenda Properties group. We will continue to create more townships that are affordable, and to grow Lagenda Properties. Concurrently, we will continue to explore complimenting business opportunities to further augment our market presence throughout Malaysia,” said Jimmy Doh Jee Ming, Managing Director, Lagenda Properties Berhad.
Lagenda Properties Berhad has its name changed recently from D.B.E. Gurney Resources Berhad, with an unchanged stock code. With the acquisition of three companies namely, Blossom Eastland Sdn Bhd, Rantau Urusan (M) Sdn Bhd and Yik Wang Trading Sdn Bhd completed on Aug 12, the affordable housing development arm has scaled up significantly with a remaining aggregate gross development value of approximately RM2.1 billion, unbilled sales of RM532 million together with a sizeable landbank of around 1,200 acres to be developed. Lagenda Properties now has two major affordable housing township projects known as Bandar Baru Setia Awan Perdana and Lagenda Teluk Intan.
Since 2012, AmBank Business Banking division has approved a total of RM480 million loan facility, including the recent facility amounting RM150 million. AmBank Business Banking division aims to maintain its position as Lagenda’s primary financing partner in Lagenda’s next growth phase. In addition, we are looking to expand our facilities to Lagenda’s business partners including their contractors and suppliers with our working capital and contract financing facilities.
Meanwhile, AmBank Retail Banking is looking to approve up to RM300 million worth of end financing for the group’s various ongoing and future project. This includes the building of the first three phases of new township – Lagenda Teluk Intan with an estimated 6,390 units of affordable homes.
AmInvestment Bank Berhad is the Principal Adviser to Lagenda Properties for their recent acquisition of real estate assets worth a total of approximately RM823 million, with AmInvestment also being the sole Placement Agent for Lagenda Properties’ upcoming placement exercise.