LBS Bina plans RM2b property project in Johor Bahru (update)

KUALA LUMPUR: LBS Bina Group Bhd plans to undertake a mixed property project in Johor Bahru with a gross development value of RM2bil following the purchase of 4.32 acres of leasehold land from the Employees Provident Fund (EPF) for RM71.82mil.

LBS Bina said on Friday the project would comprise of 2,700 units of residential and commercial properties with an estimated GDV of RM2bil spread over eight years.  The units would comprise of retails units, hotel suites, small office home office units and service apartments.

Its unit Sinaran Restu Sdn Bhd had signed two sales and purchase agreements with the EPF to acquire two pieces of 99-year leasehold land, totalling 17,514 sq metres in Bandar Johor Bahru for cash consideration of RM71.82mil.

To recap, Sinaran Restu had on July 6, 2013 signed an  agreement with Hotel Rasa Sayang Sdn Bhd to buy a 1.18 acres piece of freehold land in Johor Bahru.

LBS Bina explained the land purchased from the EPF is contiguous to the existing site and they would form a large plot of land with total area of 5.5 acres for better development planning.

Subsequent to the acquisition of the EPF land, the proposed project on the existing land would be revised and advanced from a project only consisting 579 units service apartment with GDV of about RM500mil into a mixed development project.

"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.

"The revised proposed development which is expected to be commenced in year 2015 enables the group to make fast turnaround on the development land which benefits both the purchasers as well as the company," it said.