LBS disposes of 1.2-acre land in Cameron Highlands for RM2.5 million

KUALA LUMPUR: Developer LBS Bina Group Bhd (LBGB) on Nov 5 announced the disposal of a piece of leasehold land in Bandar Tanah Rata in Cameron Highlands, Pahang for a total cash consideration of RM2.5 million to Chem-Mech Eng. Corp Sdn Bhd (CMEC). The Conditional Sale and Purchase Agreement was through its subsidiary Mayang Jelatek Sdn Bhd.

According to its announcement to Bursa, CMEC is principally engaged in property investment. LBGB’s rationale for the disposal is to realise the asset and to deploy its resources, as well as generate additional cash flow to meet its working capital requirements.

The nearly 1.2-acre tract, which has been approved for commercial use, has a lease that expires on Nov 18, 2101. The group expects a gain of RM1.14 million from the disposal of the land, as the cost of investment of the property is RM1.36 million as at Sept 30, 2009.

LBGB’s chairman, non-independent and non-executive director Datuk Seri Lim Bock Seng’s brothers Lim Mok Chau and Lim Bock Kooi are directors and shareholders of CMEC. LBGB’s director and shareholder of a subsidiary of LBGB is also a director and shareholder of CMEC.

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