LBS Bina plans RM2b project for land bought from EPF

by **Cals** Mon 17 Feb 2014, 07:46

Posted on 17 February 2014 - 05:36am

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PETALING JAYA (Feb 17, 2014): LBS Bina Group Bhd is buying two pieces of 4.32 acre 99-year leasehold land from the Employees Provident Fund (EPF) for RM71.82 million.

The purchase made through subsidiary Sinaran Restu Sdn Bhd, will see the land initially proposed for a 579-unit service apartment development with a gross development value (GDV) of RM500 million, developed into a mixed development which consists of about 2,700 units of residential and commercial properties with an estimated GDV of RM2.0 billion spanning over a period of eight years.

The mixed development will be built on land bought from the EPF and on its existing land bank. As both lands are contiguous to each other, the mixed development will be constructed on total area of about 5.5 acres.

“The proposed development in a prime location will allow the group to incorporate complementary commercial products including retail units, shops, hotel suites and SOHO units,” said LBS Bina.

"It is also in line with the overall group's strategy to enlarge its land banks in different states in the country, especially in the Central Business District of Johor Bahru which is within Zone A of Iskandar Malaysia, to meet and tap on the increasing demand from its properties in Johor.,” it said.

LBS Bina said the proposed development is expected to commence next year with an estimated cost amounting RM1.5 billion.

It will finance the project through the combination of internally generated fund and/or bank borrowings.

The 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, lies under the Zone A of the Iskandar Malaysia, a strategic development project encompasses an area of 2,217 square kilometers in total by the Malaysian government aimed at transforming Johor Bahru into a new urban metropolis of international standing.

Zone A is a district which allows easy access to transportation hubs such as the Zone Ferry Terminal with ferry routes to Indonesia and Singapore.

Located about 5 kilometers to the Custom, Immigration and Quarantine Complex (CIQ), the Development Land is about 500 meter from Persada Johor International Convention Center. It is well connected with several highways including Tebrau Highway linking the city to the north-east and the Tun Razak (TAR) highway/Senai-Skudai Highway linking it to the north-west.

In the future, a multi-modal terminal will be developed in Zone A, as well as an MRT/LRT system connecting Johor Bahru City Centre to other areas in Iskandar Malaysia.