KUALA LUMPUR: LBS Bina Group Bhd has signed a joint venture (JV) agreement with Hotel Rasa Sayang Sdn Bhd to undertake a residential development project in Johor with a gross development value of RM500 million.
In a filing with Bursa Malaysia yesterday, LBS Bina said its wholly owned subsidiary, Sinaran Restu Sdn Bhd, had last Saturday entered into the JV to develop a 1.18-acre freehold tract in Johor Baru belonging to Hotel Rasa Sayang.
The company said the site is located approximately 5km from the Customs, Immigration and Quarantine Complex (CIQ), which is about 500m from the Persada Johor International Convention Centre.
"It is strategically located within the much sought after prime commercial area along Jalan Dato' Dalam in the centre of Johor Bahru City, the ‘southern gateway' of Malaysia, which lies under Zone A of Iskandar Malaysia," said LBS Bina.
It said the proposed residential project will comprise 579 serviced apartments, with the entire development to be completed in four years.
The total development cost is estimated at RM375 million, which will be financed through a combination of internally generated funds and/or bank borrowings, the group said.
It said the existing property on the land, a 50-year-old three-storey building, used to house the Rasa Sayang Hotel, which ceased operations earlier this year.
LBS Bina said based on preliminary plans, the building will be demolished to make way for the proposed development. Hotel Rasa Sayang's entitlement as landowner was RM42 million.
This article first appeared in The Edge Financial Daily, on July 9, 2013.
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