The Zhuhai International Circuit, operated by LBS Bina Bhd, a Malaysian Company listed on the main board of the Bursa Malaysia
KUALA LUMPUR: LBS Bina Group Bhd
and its joint-venture partner plan to undertake a race-track integrated development, which includes tourism and cultural centres, on 264 acres in Zhuhai City.
In a filing with Bursa Malaysia, the property and construction group said the projects, to be located where China’s first permanent racing circuit stands, would require an estimated total investment of 3.5 billion yuan (RM2.2bil).
LBS Bina received on Thursday the permit from the Development and Reform Bureau of Gaoxin District to use the land for additional purposes as proposed under an upgrading and transformation plan for the Zhuhai International Circuit (ZIC).
Two years ago, in September 2015, the company had signed a memorandum of understanding with Zhuhai Jiuzhou Holdings Group Co Ltd to develop the ZIC land into an “urban race track integrated development.”
Under the Development and Reform Bureau’s approval, the 264-acre land is divided into two plots: West Land (about 213 acres) and East Land (about 47 acres).
West Land has been approved for additional developments encompassing China-Malaysia Cultural Centre, racing circuit amenities (inclusive of race car servicing centre, exhibition hall, research and development centre, petrol kiosk and first aid centre), theme park, commercial area and tourist visiting tower. It has been approved with a plot ratio of 0.22, giving a total built-up area of 189,726.98 sq metres.
Meanwhile, East Land has been approved for additional developments including Malaysia Cultural Village, China-Malaysia Cultural Museum, Cheng-Ho Cultural Hall, Malaysia economic and trade building, themed business area, theme hotel block, shopping arcade and daily amenities. It has been approved with a plot ratio of 1.5, giving a total built-up area of 229,819.11 sq metres.
LBS Bina needs to secure the relevant approvals from the local authorities - including Water Resources Department, Environmental Department, and Land and Resources Department - by November 2019 for the West Land and November 2020 for the East Land before beginning work.
Zhuhai International Circuit Ltd is a joint venture formed in 1992 between LBS’ Hong Kong-incorporated subsidiary Lamdeal Investments Ltd (LIL) and Zhuhai Special Economic Zone Long Yi Enterprise Co Ltd. LIL is entitled to a profit sharing of 60% in ZIC.
LBS has had a long relationship with China, starting in 1978 when it built the China Embassy in Kuala Lumpur.
The group expanded to Zhuhai in April 2004 by exercising its option to acquire Intellplace Holdings Ltd (IHL), which has 60:40 sino-foreign joint venture property development project covering about 267 acres in Zhuhai.
Also, IHL’s subsidiary Dragon Hill Corp Ltd was then the management consultant for the Zhuhai International Circuit and a 36-hole golf course.
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