PETALING JAYA: LBS Bina Group Bhd has entered into a heads of agreement (HOA) with Nylex (Malaysia) Bhd, Sinar Bina Infra Sdn Bhd, BTS Group Holdings Public Co Ltd and Ancom Bhd to build and operate a light rail transport (LRT) system with an integrated property project based on a transit-oriented development concept in Johor Baru.
Pursuant to the HOA, the group will inject its land in Johor Baru at a mutually agreed consideration which takes into account the valuation to be carried out by an independent valuer.
It will receive Nylex shares in exchange, at a price 15 sen per share, and LBS or its affiliate will be the preferred civil and construction contractor for the LRT project as well as the preferred main contractor for the development of the land.
The group stated that the HOA is subject to the completion of a feasibility study to be conducted by BTS, LRT project concessions by the state government and SBI signing definitive agreements. BTS is a listed company in Thailand and the majority shareholder of Bangkok Mass Transit System PCL, the operator of the BTS Skytrain and Bangkok BRT.
LBS executive chairman Tan Sri Lim Hock San (pix) commented that the potential collaboration presents an opportunity to monetise its land in Johor and expand its property development and construction expertise beyond the usual housing projects.
“We expect to generate infrastructure construction income and steady recurring income from this project,” he said in a statement.