The property and construction group said the collaboration would include an integrated property development using the "transit-oriented development” (TOD) concept in Johor Bharu metropolitan region, according to a filing with Bursa Malaysia.
It inked the HOA with Ancom Bhd, Nylex (Malaysia) Bhd, a 50.13 per cent-owned subsidiary of Ancom, Sinar Bina Infra Sdn Bhd (SBI) and BTS Group Holdings Public Company Ltd.
The group said the LRT project is subject to a feasibility study being completed and the Johor state government granting the concession award.
The parties entered into the HOA to record the salient terms of the proposals to incorporate into the definitive agreements to be mutually agreed between them.
According to the HOA, Nylex shall appoint BTS, Bangkok Mass Transit System PCL major shareholder to commission a feasibility study on the commercial viability of a transport-oriented development in Johor Bharu metropolitan region.
The planned LRT project is projected to have an estimated carrying capacity of 15,000 passengers per hour per direction, matching that of the RTS Link currently being built from Singapore to Johor Bahru; it could span 75 kilometres (km) with the initial phase within the Johor Bahru city centre to be about 9 km.
It noted that BTS, or its affiliate, shall be the preferred equipment supplier and system integrator for the LRT project and its preferred main contractor for operation and maintenance, while LBS or its affiliate will be the preferred civil and construction contractor.
SBI is to liaise with the Johor state government on all matters related to the project, procure the LRT concession, and also the land involved.
LBS said it will also inject the LBS land parcels, free of any encumbrances, into the enlarged Nylex Group for the purpose of the TOD development and LBS, or its affiliate, shall be the preferred main contractor for the development of the LBS land; Nylex shall in return issue new Nylex shares equivalent to the issue price of 15 sen per share.
The collaboration provides the consortium partners with an opportunity to monetise their land in Johor, expand their expertise beyond their usual housing projects and generate infrastructure construction income and a steady future recurring income, LBS said.
The collaboration also provides an opportunity to work alongside established local and international companies with appropriate technical skills and knowledge in the industry; thereby developing their respective partners’ expertise, LBS added. - Bernama