Update LBS Bina inks JV for development project in Johor with GDV RM500 million

Update LBS Bina inks JV for development project in Johor with GDV RM500 million
Business & Markets 2013
Written by Surin Murugiah of theedgemalaysia.com
Monday, 08 July 2013 14:09

KUALA LUMPUR (July 8): LBS BINA GROUP BHD [] has inked a joint venture agreement (JV) with Hotel Rasa Sayang for a residential development project in Johor with a gross development value of RM500 million.


In a filing to Bursa Malaysia Securities on Monday, the company said its wholly owned subsidiary, Sinaran Restu Sdn Bhd had on July 6 entered into the JV to develop the freehold land measuring 1.18 acres in the state.


The company said the development site, located approximately 5 kilometers to the Custom, Immigration and Quarantine Complex (CIQ), was about 500 meter from Persada Johor International Convention Center.


“The Development Land is strategically located within the much sought-after prime commercial area along Jalan Dato’ Dalam in center of Johor Bahru City, the “Southern Gateway” of Malaysia, which lies under the Zone A of the Iskandar Malaysia,” it said.


LBS Bina said the land was proposed to be transformed into a residential project comprises 579 units of services apartment with estimated total Gross Development Value (“GDV”) of approximately RM500 million spanning over an estimated project period of 4 years (“Proposed Development”).


It said the total development cost was estimated to be RM375 million which was planned to be financed through the combination of internally generated fund and/or bank borrowings.


The company said the land was currently occupied with 50-year old three-storey building that sited the Rasa Sayang Hotel, which had ceased operations in 2013.


It said that based on preliminary plans, the hotel was to be demolished for the proposed development.


It said Hotel Rasa Sayang’s entitlement as landowner was RM42 million.