LBS Bina buying land in Sri Kembangan for RM600m project

PETALING JAYA: LBS Bina Group Bhd is acquiring 7.98 acres of land Seri Kembangan from Stratmont Development Sdn Bhd for RM63 million or RM181.31 per square foot, with plans to develop a RM600 million mixed project.

In a filing with Bursa Malaysia yesterday, the group said its indirect wholly-owned subsidiary Utuh Aspirasi Sdn Bhd had entered into a sale and purchase agreement (SPA) with Stratmont Development for the acquisition of the vacant leasehold land.

“The proposed acquisition is in line with the group’s expansion plan. It presents an opportunity for the company to enhance the overall existing project plan, while enlarging the group’s land banks in the Klang Valley, which is one of the areas that has strong growth potential in Malaysia,” it said.

Based on preliminary plans, the mixed development will comprise four towers of service apartments offering 1,323 units with an estimated gross development value of RM600 million.

The residential units would be priced within the “affordable” range to cater to first time home buyers, working professionals and young families.

The group is in the initial stage of development planning for the project which is estimated to take eight years to complete. It plans to finance the development cost with internally generated funds and/or bank borrowings.

The proposed development is expected to commence next year, enabling the group to make fast turnaround on the land and contribute positively to its future revenue stream and profitability.

The land is located in Kinrara Uptown, LP7 in a mixed township development known as Taman Lestari Perdana. The township is accessible via various highways including MEX Highway and South Klang Valley Expressway.

A few proposed highways and infrastructure developments are expected to enhance the connectivity between Seri Kembangan and other areas. These include the proposed Serdang-Kinrara-Putrajaya Expressway, Kinrara-Damansara Expressway and the Seri Kembangan interchange at MEX Highway.

The group’s share price closed unchanged yesterday at RM1.97 with a total of 225,900 shares traded, giving it a market capitalisation of RM1.33 billion.