LBS Bina’s Zhuhai racing circuit granted additional usage rights

KUALA LUMPUR (Nov 17): LBS Bina Group Bhd has been granted additional usage rights from China’s Development and Reform Bureau of Gaoxin District for its Zhuhai International Circuit (ZIC) land, which currently occupies 264 acres (106.83ha), in Zhuhai, China.

The land is currently being used as a racing circuit.

In a filing with Bursa Malaysia yesterday, LBS said under the approval, the land will be divided into two plots, namely East Land and West Land.

West Land, which measures 862,395.38 sq m, has been approved with a plot ratio of 0.22, giving it a total built-up area of 189,726.98 sq m.

The approved additional developments for West Land encompass China-Malaysia Cultural Centre, racing circuit amenities (inclusive of race car servicing centre, exhibition hall, research and development centre, petrol kiosk, first aid centre), theme park, commercial area and tourist visiting tower.

East Land, measuring 153,212.74 sq m, has been approved with a plot ratio of 1.5, giving it a total built-up area of 229,819.11 sq m.

“East Land has been approved for additional developments encompassing Malaysia Cultural Village, China-Malaysia Cultural Museum, Cheng-Ho Cultural Hall, Malaysia economic and trade building, themed business area, themed hotel block, shopping arcade and daily amenities,” the group said.

“The preliminary estimated total investment for both projects is US$526 million (RM2.2 billion),” said LBS.

LBS said it is required to obtain the relevant approvals from the local authorities, namely the water resources department, environmental department, the land and resources department, latest by November 2019 for the West Land and November 2020 for the East Land, prior to commencement of work.

ZIC is a sino-foreign joint venture formed in 1992 between the Zhuhai Special Economic Zone and Long Yi Enterprise Co Ltd, a subsidiary of Zhuhai Jiuzhou Holdings and Lamdeal Investment Ltd (LIL), a Hong Kong incorporated subsidiary of LBS. LIL is entitled to a profit sharing of 60% for the circuit.

This article first appeared in The Edge Financial Daily, on Nov 17, 2017.

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