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- LBS Bina said the JV offers a strategic opportunity to expand its commercial portfolio, leverage state-endorsed infrastructure investments, and tap into the long-term demand for industrial space.
KUALA LUMPUR (Oct 28): Property developer LBS Bina Group Bhd (KL:LBS) has finalised its partnership with Oriental Holdings Bhd (KL:ORIENT) to develop a mixed-use project in Melaka, with the first phase alone boasting an estimated gross development value (GDV) of RM600 million.
LBS Bina’s 80%-owned subsidiary, Business Park Development Sdn Bhd, has executed joint venture (JV) agreements with Oriental Holdings’ wholly-owned Ultra Green Sdn Bhd for the development of Phases 1A and 1B, totalling 54.75 acres, according to an exchange filing on Monday (Oct 27).
Ultra Green, which owns the land, will be entitled to 17% of the estimated RM600 million GDV for Phases 1A and 1B, with the remainder allocated to Business Park Development.
The remaining 20% stake in Business Park Development is owned by independent investor Au-Yang Liang Hin, LBS Bina disclosed in its filing.
Phases 1A and 1B constitute a segment of the larger four-phase development project on the 561 acres held by Oriental Holding’s units. This land is situated within the Straits of Melaka Waterfront Economic Zone, a state-initiated blueprint intended to boost sustainable economic activity along the coastline.
The JV agreements follow a memorandum of understanding for the development project that LBS Bina and Oriental signed in May this year.
LBS Bina said the JV offers a strategic opportunity to expand its commercial portfolio, leverage state-endorsed infrastructure investments, and tap into the long-term demand for industrial space. It also complements the group’s existing development project with the Melaka state government to reclaim and develop 735 acres of coastal land, the group added.
Based on a preliminary plan, Phases 1A and 1B will predominantly feature commercial terrace units with an estimated development cost of RM490 million. This will be funded by Business Park Development through internally generated funds and borrowings.
The development period is set to span five years, with the development’s first phase expected to be completed by 2032.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
