KUALA LUMPUR: LBS Bina Group Bhd's partnership with China state-owned company Jiuzhou Development Co Ltd (JDCL) is progressing well with layout plans being drafted and likely to be approved by the China government within three months.
According to a source, JDCL has paid up 200 million yuan for the land held by Dragon Hill Corp Ltd and both LBS and JDCL are preparing the development layout for the 197-acre property.
“LBS and its partner are in the midst of drafting the layout for the mixed development and a resort is in the plan as the property is adjacent to a golf course,” the source said.
It added that the layout should be able to get the state government's approval within the next two to three months.
On whether LBS is considering any venture into the ferry services which JDCL runs, the source pointed out that the Hong Kong-Zhuhai-Macao Bridge was expected to be completed in 2016 and that might have an impact on ferry services.
“If JDCL wants LBS to be involved, LBS can be a shareholder and then it will be involved with the developments there,” the source told StarBizWeek at the LBS media appreciation night.
LBS managing director Datuk Lim Hock San said the memorandum of understanding (MoU) with JDCL signed last month was coming off to a good start and he would be meeting JDCL next week.
“The MoU states that we have to conclude the agreement within six months but, in the meantime, the agreement has not been finalised yet so we have not come up with any mechanism,” he said, adding that he could not share more about the cash and equity deal at the moment.
On the estimated HK$1.65bil (RM652mil) that LBS might receive from the deal, Lim said that “it would be channelled back for developments in Malaysia.”
Last month, LBS's wholly-owned Intellplace Holdings Ltd entered an MoU with JDCL's wholly-owned subsidiary, Jiuzhou Technology Co Ltd, for the sale of equity in two of LBS' companies involved in golf club operations and property development projects in Zhuhai.
LBS is expected to become a substantial shareholder of the Hong Kong Stock Exchange-listed JDCL from the negotiations.
For the Zhuhai project, LBS will not be involved in the financing although it will have a stake in JDCL.
Based on the development plans last year, the gross development value of the project is estimated at 17 billion yuan.
By The Star
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