KUALA LUMPUR: Bina Darulaman Bhd (BDB) is targeting a top line growth of 10% for its financial year ending December (FY15), which it expects will be driven by its affordable housing projects under its property development division. BDB  group managing director Datuk Izham Yusoff said the Kedah-based oil palm plantation and property group will pursue aggressive property development this year, with a focus on the affordable housing market in Kedah.

“The focus for us in the next few years is really about trying to develop affordable housing, particularly in Kedah. The demand is huge,” Izham told a press conference yesterday.

BDB posted a net profit of RM24.16 million in FY14, up 14% from RM21.14 million in FY13, while revenue rose 17% to RM328.88 million from RM281 million. BDB plans to launch an affordable housing project in Langkawi, which will see the roll-out of 500 apartment units in Kuah by the end of the year.

“In Kedah, the slowdown in the property market is not as bad as in the Klang Valley,” he said, adding that the group's latest launch of its Taman Tunku Intan Shafinaz project in Jitra, Kedah, saw a take-up rate of 70%.

Besides the affordable housing in Kuah, BDB has three other projects in Langkawi, including the development of a 200-acre (80.9ha) piece of hillside land and the development of another 13-acre tract in the mangrove area for ecotourism villas.

The group is also in talks with the Langkawi Municipal Council to jointly upgrade the Kuah jetty facilities, and to construct a hotel and multistorey car park nearby. Izham said the four projects in Langkawi have a total gross development value of RM1.5 billion, to be realised over the next five to seven years.

The group has about 2,000 acres of undeveloped land in Kedah, after replenishing its land bank with the recent acquisition of land from its substantial shareholder, Perbadanan Kemajuan Negeri Kedah, in the vicinity of key cities in Kedah.

“With the acquisitions, it gives us a bit more flexibility in terms of launching new products,” said Izham.

On whether BDB is looking at entering the Greater Klang Valley property market, Izham said it is considering outright land buys or joint ventures with landowners and hopes to decide by year end the projects it wants to pursue.

For its construction segment, Izham said BDB will focus on public affordable home projects, and it is bullish some of the projects will come onstream by year end. BDB’s shares closed unchanged at 80.5 sen yesterday, with a market capitalisation of RM244.6 million.

This article first appeared in The Edge Financial Daily, on July 8, 2015.