LBS Bina in pact with four firms to build, operate LRT system in Johor

KUALA LUMPUR: LBS Bina Group Bhd has teamed up 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 development based on the "Transit-Oriented Development" concept in Johor Bahru's metropolitan region. 

LBS and SBI have certain strategic land banks in Johor Bahru while BTS is a public listed company in Thailand and the majority shareholder of Bangkok Mass Transit System PCL, the operator of the BTS Skytrain and Bangkok BRT.

Under a heads of agreement (HoA) signed by the companies, LBS said it would inject its land at a price to be mutually agreed based on the valuation to be carried out by an independent valuer. 

In exchange, LBS will receive Nylex shares priced at 15 sen per share.

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 LBS lands. 

The HOA is subject to the completion of a feasibility study to be conducted by BTS and professional consultants, the grant of the LRT project concessions by the state government of Johor to SBI and signing of definitive agreements.

LBS executive chairman Tan Sri Lim Hock San said the potential collaboration provided it with an opportunity to monetise its land in Johor and expand its property development and construction expertise beyond its usual housing projects.