A file picture of the Gohtong Jaya township. Property player LBI Capital Bhd has announced that it will sign a joint venture agreement with LBS Bina Group Bhd to develop three blocks of service apartments and a hotel block here.
PETALING JAYA: Property player LBI Capital Bhd has proposed to sign a joint venture agreement with LBS Bina Group Bhd to develop three blocks of service apartments and a hotel block with a gross development value (GDV) of RM370mil.
In a filing with Bursa, LBI Capital’s unit Triple Equity Sdn Bhd, which owns the 21,660 sq m leasehold land in Gohtong Jaya, Pahang, said it should be entitled to 15% or RM55.5mil of the GDV.
LBS Bina’s wholly-owned subsidiary, Equal Sign Sdn Bhd as the developer, would pay the landowner RM500,000 upon the execution of the agreement.
Upon approval from the suppliers of main utilities to the project by the landowner, LBS Bina would pay LBI Capital RM1mil, it added.
The company said the developer would pay the landowner RM1mil within 12 months from the second cash payment or the charging of the development land, whichever is earlier.
Its original investment cost was RM5.5mil.
It also said the proposed development should be completed within five years with a further extension of two years subject to interest of 6% per annum.
According to LBI Capital, the development comprised 610 serviced apartments and a hotel with 186 rooms at the matured Gohtong Jaya township, which is along the main road to Genting Highland.
LBI Capital has secured the development order and building plan approval for the project, it added.
It expected the JV to contribute positively to its earnings within the next five years.