“The Johor Bahru metropolitan region is up and coming, and connectivity is crucial for its growth,” said Lim.
PETALING JAYA: LBS Bina Group Bhd (LBS) has announced that it has entered into a Heads of Agreement (HOA) with Nylex (Malaysia) Bhd (Nylex), Sinar Bina Infra Sdn Bhd (SBI), BTS Group Holdings Public Company Ltd (BTS) and Ancom Bhd (Ancom) to build and operate a light rail transit (LRT) system in Johor Bahru’s metropolitan region.
The joint venture (JV) project includes an integrated property development based on the transit-oriented development concept in Johor.
LBS and SBI have strategic land banks in Johor Bahru while BTS is a public-listed company in Thailand and the majority shareholder of Bangkok Mass Transit System PCL, the operator of the BTS Skytrain and Bangkok BRT.
Under the agreement, LBS will inject its land at a consideration to be mutually agreed taking into account the valuation to be carried out by an independent valuer. In exchange, LBS will receive Nylex shares priced at RM0.15 per share and LBS or its affiliate is to be the preferred civil and construction contractor for the LRT project as well as the preferred main contractor for the development of the LBS land.
The HOA is subject to the completion of a feasibility study to be conducted by BTS and professional consultants, the grant of the LRT project concessions by the state government of Johor to SBI and the signing of definitive agreements.
“This potential collaboration provides us with an opportunity to monetise our land in Johor and expand our property development and construction expertise beyond our usual housing projects,” said LBS executive chairman Tan Sri Lim Hock San.
“We expect to generate infrastructure construction income and steady recurring income from this project. The Johor Bahru metropolitan region is up and coming, and connectivity is crucial for its growth. Our (parcels of) land are strategically located. We foresee this project to be a viable development which will ease the transportation and connectivity concerns of the local community.
“In addition, we are pleased to be able to work with experienced professionals who have appropriate technical skills and knowledge to see us through this project. We will work towards inking the definitive agreements and share any developments in addition to the final terms and conditions when available,” he said.
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