LBS Bina Group Bhd which is synonymous with township and affordable housing development has set its sight on developing an industry hub with port facilities in Melaka.
This follows the inking of a reclamation and development agreement (RDA) between its 70%-owned subsidiary Leaptec Engineering Sdn Bhd with the Melaka state government for the rights to reclaim and develop a land area measuring 1,200 acres.
The reclaimed land will be part of the Melaka Waterfront Economic Zone (M-WEZ) which spans an area of 25,000 acres along the Melaka coastline.
Economic activities to be made available in the said industry hub which is strategically located at Tanjung Bruas, Bandar XLV in the central Melaka district include logistic and warehousing, manufacturing, liquefied natural gas (LNG) and port-related businesses.
“LBS also plans to seek smart partnership or mutually beneficial collaboration with other parties with regard to this reclamation and development project,” them property developer pointed out.
“This project is in line with LBS’s plans to enlarge its land banks in other states particularly in states with strong growth potential such as Melaka.”
In consideration of the rights granted, LBS said the Melaka state government shall be paid a cash consideration of RM94.86 mil which will be funded by internally generated funds and/or bank borrowings.
Upon successful completion of the reclamation works, LBS shall be entitled to four-fifth (80%) the reclaimed land with the Melaka state government be entitled to the remaining one-fifth (20%) portion of the area.
“This RDA provides the group with an opportunity to procure sizeable tracts of lands at the coastal area of the Straits of Melaka, one of the busiest shipping lanes in the world,” commented LBS executive chairman Tan Sri Lim Hock San after the inking of the RDA.
“This will enable the group to establish a dominant presence in this area with access to a new market catchment, particularly in the industrial and commercial segment.”
In fact, with the group’s strong presence and foothold in China’s Guangdong province, LBS will be able to further leverage its “friendly state and province” relationships between Melaka and Guangdong to explore bilateral investment corporations and establishments.
“The RDA also augurs well for our listed subsidiary, MGB Bhd which will benefit from potential construction works to be carried out for the project,” envisaged Lim.”
“We are confident that the industrial and commercial development will be well received in view of its strategic location, growing economic activities in the vicinity and support from the state government.”
At 3.02pm, LBS was up 3 sen or 5.61% to 56.5 sen with 12.58 million shares traded, thus valuing the company at RM887 mil. – April 8, 2021
