PETALING JAYA: LBS Bina Group Bhd
’s indirect wholly-owned subsidiary, Sejuta Bina Sdn Bhd, has entered into a joint venture (JV) with Saga Tunas Sdn Bhd, to develop about seven acres of land with an estimated gross development value of RM1bil.
In a filing with Bursa Malaysia yesterday, the property developer said the six pieces of freehold vacant Malay reserved land, all owned by Saga Tunas, were strategically located in Sungai Penchala, Kuala Lumpur.
“With the strategic location and improving positive demand, the management is confident the proposed development will receive optimistic demand and growth potential,” LBS Bina said.
It added the proposed development was scheduled to be commenced within 12 months from the JV becoming unconditional, and would be funded through a combination of internally generated funds and bank borrowings.
“This project is planned to be carried out in phases and spanning over a development period of five years,” it noted.
Saga Tunas will be entitled to about RM67mil cash forming part of the land cost.
Additionally, Saga Tunas will also be entitled for 10% of the gross profit generated from the proposed development, which will be settled by way of cash and/or in kind upon completion of the entire development.
Meanwhile, Sejuta Bina will be entitled to all the sale proceeds of the properties comprised in the proposed development after the deduction of Saga Tunas’ entitlement.
LBS Bina expects this mixed development to contribute positively to the future earnings of the company and its subsidiaries.
Sejuta Bina, incorporated on Feb 7 as a private limited company, has a total issued and paid-up share capital of RM100 comprising 100 ordinary shares.
