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LBI’s joint venture project in Bentong

 | January 24, 2014

By K Vinotharan

KUALA LUMPUR: LBI Capital Bhd’s wholly-owned subsidiary Triple Equity Sdn Bhd (TESB) has entered into a joint venture (JV) with Equal Sign Sdn Bhd (ESSB) for the proposed development on a piece of leasehold land in Bentong, Pahang.

The JV will see the development of 610 serviced apartments and a hotel block with 186 rooms with a preliminary estimate gross development value (GDV) at RM370 million.

This JV entitles the land owner to 15% of the GDV from the development in the properties, an exchange filing by LBI Capital said yesterday.

The land is located within Gohtong Jaya in Pahang, measuring 21,660 sq m with lease expiring on Nov 21, 2089.

ESSB would have to pay TESB a sum of RM5 million upon completion of the JV and RM1 million when TESB obtains the approval from the main utilities suppliers.

The proposed development is set to be completed in five years with further extensions of two years subject to interest of 6% per annum.

This JV is expected to contribute positively to the earnings and net tangible assets (NTA) of LBI Group, which is based in Shah Alam, Selangor, in the near future.

The principal activities of LBI Capital are manufacturing of rubber products, property development and project management.

This content is provided by FMT content provider The Malaysian Reserve


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