LBS Bina Group Berhad (LBS) has signed a reclamation and development agreement (RDA) with the Malacca state government for the rights to reclaim and develop a 1,200 acres area through its indirect 70 percent-owned subsidiary, Leaptec Engineering Sdn. Bhd.
The proposed reclaimed land will be part of the Melaka Waterfront Economic Zone (M-WEZ) which spans an area of 25,000 acres located in the coastline of the Melaka state.
LBS intends to develop an industry hub with port facilities which includes logistic and warehouse, manufacturing, liquefied natural gas (LNG), port related business and such other developments or economic activities on the site, which is located at Tanjung Bruas, Bandar XLV, Daerah Melaka Tengah, Melaka.
Additionally, the property developer also plans to seek smart partnership or mutually beneficial collaboration with other parties with regards to this reclamation and development project.
This project is in line with the group’s plans to enlarge its land banks in other states particularly in states with strong growth potential such as Melaka.
In consideration of the rights granted, the state government will be paid a cash consideration of RM94.86 million which will be funded by internally generated funds and/or bank borrowings.
Upon successful completion of the reclamation works, LBS shall be entitled to four-fifth of the reclaimed land whereas the Melaka state government shall be entitled to the remaining one-fifth portion of the area.
“This RDA provides the group with an opportunity to procure sizable tracts of lands at the coastal area of the Straits of Melaka, one of the busiest shipping lanes in the world. This will enable the group to establish a dominant presence in this area with access to a new market catchment particularly in the industrial and commercial segment.
We are confident that the industrial and commercial development will be well received in view of its strategic location, growing economic activities in the vicinity and support from the state government,” LBS Executive Chairman, Lim Hock San said after the signing ceremony.