The development will be carried out on six parcels of freehold vacant Malay Reserved Land measuring 6.97 acres in phases over a five-year period, said LBS Bina in a bourse filing.

LBS Bina’s indirect wholly-owned subsidiary Sejuta Bina Sdn Bhd inked the JVA with Saga Tunas, a property developer.

It said Saga Tunas’ director and shareholder Azizulkhir Abdul Wahab is also a director and shareholder of four of LBS Bina’s indirect subsidiaries.

“The proposed development, planned to commence within 12 months from the JVA becoming unconditional, will be funded through a combination of internally generated funds and bank borrowings,” LBS Bina said.

“The development land is strategically located within notable landmarks such as Empire Damansara, IKEA Damansara, eCurve, Bandar Utama, Mont Kiara and Sri Hartamas,” it added.

Additionally, Saga Tunas will receive a cash payment of RM67 million as part of the land expenses along with 10% of the total profit generated from the development project.

Sejuta Bina will receive all the proceeds from the sale of the properties included in the development, subtracting the entitlement of Saga Tunas.

The JVA is expected to contribute positively to the Petaling Jaya-based developer’s future revenue stream and profitability.

“This mixed development is anticipated to contribute positively to the future earnings of LBS Bina Group and its subsidiaries,” the company said.