Berjaya Assets Bhd (Bassets) is enroute to taking over the development of Lido Boulevard, the multi-billion ringgit integrated waterfront development project by Central Malaysia Properties Sdn Bhd (CMP) which has been unduly delayed.
As soon as negotiations are over, Bassets will work on the project almost immediately. The time-line for the wrapping up of negotiations is 6 months.
“The project will be in a better hand with Bassets handling it in terms of project management and the most important thing is the strong financial backing from Berjaya Group,” a source told StarBizWeek.
The source added apart from the strong financial backing from the conglomerate, Lido Boulevard would benefit from Berjaya’s marketing experience to market the property to local and foreign buyers.
The flagship project by CMP, a company linked to business tycoon Tan Sri Vincent Tan Chee Yioun, is a joint-venture between CMP and Johor State Secretary Inc.
The latter is an investment holding company of the Johor state government, which is also the land owner.
Tan owns 60% equity in CMP while the remaining 40% is held by CMP managing director Datuk Chan Tien Ghee. Both Tan and Chan made headlines recently when they bought over the Welsh’s Cardiff City Football Club.
CMP had in March this year awarded a deal worth RM238.6mil to the Belgium-based dredging company Jan De Nul to carry out reclamation works on the site.
The works would take about 15 months to complete, once completed; about 38.11ha would be reclaimed land while 11.39ha would be on a piled concrete desk.
According to Wikipedia, major projects realised in part or whole by Jan De Nul include the expansion of Panama Canal, Australia’s Port Botany expansion, the Manifa Field Causeway and Island project in Saudi Arabia, the Palm Jebel Ali artificial island in Dubai and the adjacent Dubai Waterfront.
“Jan De Nul has set an office in the city (Johor Baru) but the reclamation works have not started as schedule due to the takeover exercise,” said the source.
About 6.8 million cu m of sand sourced from Teluk Ramunia on Johor’s southeast is needed for reclamation works. The sand will be transported by a dredger anchored at Stulang Laut near the Causeway, then pumped to the site via a 2km floating and sunken pipeline.
Located on 49.51ha, the project will be developed in phases stretching 2.4km along the Tebrau Straits from the now defunct Lot One shopping complex to the Harbour Master’s office.
The project comprises four main components – luxury condominiums, waterfront office suites, a hotel and a shopping mall.
Lido Boulevard, with a gross development value of RM4bil, is expected to take shape by 2016 and it will completely rehabilitate Lido Beach and give Johor Baru a facelift.
Bassets has clarified in a posting to Bursa KL that the controlling shareholders of Central Malaysia Properties Sdn Bhd (“CMP”) had in fact invited Bassets to consider taking up an equity stake in CMP, which is the developer of the multi-billion ringgit integrated waterfront development project known as “Lido Boulevard” along the Tebrau Straits in Johor.
Bassets is considering the proposal and an appropriate announcement will be made to Bursa Malaysia Securities Berhad in due course should the Company decides to proceed with the investment.
So, this looks like another positive cash-flow for Bassets.
Bassets is considering the proposal and an appropriate announcement will be made to Bursa Malaysia Securities Berhad in due course should the Company decides to proceed with the investment.
So, this looks like another positive cash-flow for Bassets.
Will the price of Bassets shares increase to factor in the new potential values?
We will see.
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