Seed Homes is a new portfolio under Sime Darby Property aimed to deliver innovative solutions in the affordable homes segment.
PETALING JAYA: Sime Darby Property Bhd
, through its wholly-owned subsidiary Seed Homes Sdn Bhd, has signed a shareholders’ agreement with Lagenda Properties Bhd to set up Seed Homes Lagenda, a 50:50 joint venture (JV) to develop affordable homes.
In a joint statement, the parties said the Seed Homes is a new portfolio under Sime Darby Property aimed to deliver innovative solutions in the affordable homes segment.
The JV will leverage Sime Darby Property’s over 50-year presence and track record, along with its extensive and strategic land bank, as well as Lagenda Properties’ highly scalable model of developing self-sustainable affordable townships.
“The partnership is expected to support the expanding affordable housing market in Malaysia and further encourage homeownership,” the companies said.
They said Seed Homes Lagenda is set to embark on its first affordable township project in Gurun, Kedah via the acquisition of a 249-acre parcel of land from Sime Darby Property.
“Anticipated to yield over 3,000 affordable homes, this development capitalises on its strategic location and spillover effects of the potential industrial growth in Gurun.”
In the same statement, Sime Darby Property group managing director Datuk Azmir Merican said the JV will be the group’s maiden foray into the affordable township sector.
“The partnership will also serve as a vehicle to commercially develop affordable homes to provide greater access to homeownership for a wide range of customers.
“This JV demonstrates our commitment to pursue and deliver affordable homes and partner with parties that can bring value to the overall proposition, guided by our ‘Purpose to be a Value Multiplier for People, Businesses, Economies and the Planet’ motto.”
Meanwhile, Lagenda Properties managing director Datuk Jimmy Doh conveyed his enthusiasm about the JV, leveraging the strengths of both companies to deliver a new standard in affordable housing.
“With a successful track record that includes the delivery of over 10,000 affordable homes, Lagenda Properties has demonstrated a keen ability to align with market preferences and needs.”
He said the company’s established expertise enables the group to develop affordable townships with attractive price points.
“This proven model, refined through continuous improvement across multiple projects, is a valuable skill we bring to Seed Homes Lagenda.
“Alongside Sime Darby Property, we aspire to enhance our impact and broaden our reach, to deliver affordable homes to a wider spectrum of Malaysians,” he said.
For the third quarter ended Sept 30, 2023, Sime Darby Property’s net profit surged to RM144.92mil from RM56.13mil in the same quarter in the previous year, leading to a jump in basic earnings per share to 2.1 sen from 0.8 sen previously.
Revenue during the quarter under review was RM1.05bil, compared to RM689.3mil in the same 2022 quarter.
Meanwhile, Lagenda Properties’ net profit for the third quarter ended Sept 30, 2023 rose to RM38.77mil from RM35.73mil in the previous corresponding period.
This was mainly due to improvement and contribution from its property development segment as sales conversion improved.
Revenue in the third quarter grew to RM217.89mil from RM180.72mil a year earlier.
This was driven by newly launched projects such as Darulaman Lagenda Phases 1, 2 and 3, Taman Mulia Phase 3, BBSAP Fasa 4B and Lagenda Teluk Intan Fasa 3B.
