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Wednesday, July 14, 2010

LBS Bina to launch RM5b China project next year

Property developer LBS Bina Group Bhd will launch its fourth project, worth over RM5 billion, in Zhuhai, China, in the second half of next year.

The 60:40 joint venture of LBS and Jiuzhou Group, a Chinese government-linked company, has been delayed by three years because of the uncertain economic conditions.

LBS managing director Datuk Lim Hock San said the master plan for the 76ha project comprising high-end residential properties was under way.

He said that its launch had been delayed because of the global economic crisis.

"We took the opportunity to fine-tune the development with new products. We estimate that the project's gross development value (GDV) will exceed RM5 billion," Lim said.
The concept will be similar to the Tropicana Golf & Country Resort in Petaling Jaya, Selangor, which features a golf course, bungalow lots, high-end condominums and some commercial elements, among other things.

Lim was speaking to reporters in Petaling Jaya yesterday after signing an agreement with MIMB Investment Bank Bhd, a unit of EON Bank Bhd, to act as the principal adviser and lead arranger for a RM135 million sukuk (Islamic bond) programme to finance LBS' projects.

The signing was witnessed by Housing and Local Government Minister Datuk Wira Chor Chee Heung.

The sukuk programme will be the first Islamic private debt securities issuance in the country to be guaranteed by Danajamin Nasional Bhd.

Lim said that proceeds from LBS' fund-raising exercise would go towards its new projects in the country, such as Bandar Putera Indah in Batu Pahat, Johor; D'Puchong in Puchong, Selangor; and Taman Royal Lily in Cameron Highlands, Pahang.

The projects, with a total GDV of RM600 million, are slated to be launched in the second half of this year.

Lim also said that LBS was expected to be back in the black this year. It posted a net loss of RM16.8 million last year.

"From January up until now, we have achieved RM180 million in sales. We expect more income in the second half of the year from our new launches.

"The sukuk issuance will enable us to do property development on a whole new level. We are moving to medium- to high-end property development."

LBS' landbank comprises 920ha in the Klang Valley, Batu Pahat, Cameron Highlands, Ipoh and China, which will keep it busy for the next 10 to 15 years.

By Business Times

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