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LBS eyes local and foreign investors for Melaka project

LBS eyes local and foreign investors for Melaka project

03 Jun 2021

LBS Bina Group Bhd is eyeing potential collaborations with both local and foreign investors in the region to invest and develop part of the Melaka Waterfront Economic Zone (M-WEZ) using their respective experiences and capital in areas such as port, oil and gas as well as industrial.

The company is open to investors from China, Japan, South Korea, Hong Kong and other countries via several exercises but not limited to Request for Information and Interest (RFII) to invest and develop part of the M-WEZ.

On the funding for reclamation and development of the 486ha in Tanjung Bruas, executive chairman Tan Sri Lim Hock San said it would very much depend on the number of foreign investors coming in with the capital to invest in Malaysia, alongside local companies requiring to play their part too.

LBS indirect subsidiary Leaptec Engineering Sdn Bhd has signed a reclamation and development agreement with the Melaka government in April for the reclamation and development of an industrial hub with port facilities in Tanjung Bruas, Melaka Tengah.

The approved reclamation area is intended to be developed into an industrial hub with port facilities which include logistic and warehouse, manufacturing, liquified natural gas (LNG), port-related business and similar other development or economic activities, he said.

The reclamation works would definitely enhance the economy, boosting Melaka’s tourism, create jobs opportunities and strengthen the bilateral relationship with investment countries, he told Bernama in an exclusive interview recently.

On the study requested by the Melaka government with regard to the M-WEZ project, he said the group expected to complete and compile the documentation within this year, with the study on the sea depth being completed so far.

Other than the detailed Environmental Impact Assessment (EIA), Fisheries Impact Assessment (FIA), Social Impact Assessment (SIA), Hydraulic Study and Marine Risk management report, the necessary studies and approvals are mostly identical to our other typical development works, said Lim.

“Since all consultants and specialist are already on board, we will be working towards the 18 months time frame to complete the studies and to obtain the necessary approvals.”

Asked about project launches for 2021, Lim said LBS planned 16 launches with an estimated gross development value (GDV) of RM2.65bil.

These include in KITA @ Cybersouth township in Dengkil, LBS Alam Perdana township at Bandar Puncak Alam, Puchong, Mercu Jalil at Bukit Jalil and Prestige Residence Apartment at Seri Kembangan, Chemor, Perak.

As at May 30,2021, LBS has garnered RM461mil sales and bookings in the pipeline of RM492mil.

“We are targeting RM1.2bil sales by the end of 2021. We are cautious due the pandemic, but are confident of surpassing the target, ” he said.

On new projects, he said three housing projects are set to be launched in the second half of the year in KITA @ Cybersouth, Bayu Hills serviced apartment in Genting Permai and Prestige Residence Block A Apartment at Seri Kembangan with GDV of RM648 million, RM430mil and RM295mil, respectively.

“With this three major projects for this year, we remain cautious but optimistic as our affordable housing is well received due to the lower interest rates. The Home Ownership Campaign (HOC) extension by the government will be positive news among industry players and home buyers.

LBS Bina’s net profit soared to RM25.15mil for the first quarter ended March 31,2021 from RM9.34mil posted in the same quarter last year, while revenue improved to RM402.55mil, driven by better revenue in the property development as well as construction and trading segments.

With the RM2.067bil unbilled sales as at May 15,2021, he strongly believes this would generate healthy cash flow for another two years and contribute towards better earnings for the group.

Meanwhile, he said the order book as at April 30,2021 for MGB Bhd, which is majority owned by LBS Bina, was valued at RM2.03bil.

Source: Bernama