LGB Properties mulls mixed-use development on BAT land

PETALING JAYA (June 13): LGB Properties (M) Sdn Bhd, a subsidiary of LGB Group, is planning a mixed-use development on a parcel in Virginia Park, Section 13 here that is currently occupied by British American Tobacco (M) Bhd’s (BAT) factory, said LGB Group director Lim Chin Sean.

“We do have some plans in mind, but we have a lot of time to plan for the land as there is a one-year tenancy agreement with BAT. We are still working on our plans and more details will be disclosed after the transaction is done,” he told TheEdgeProperty.com in a phone interview.

He said the transaction might take about three months to complete.

“It could be an international lifestyle mixed-use development which will attract local and international buyers as the group also has exposure on the international market,” Lim added.

LGB Group, through its subsidiary Bellworth Developments Sdn Bhd, has a number of developments locally – such as The Greens in Taman Tun Dr Ismail, Saujana Greens in Puchong and Bellworth Melaka, and one development overseas: Lancer Square in West Kensington, London.

According to a Bursa Malaysia filing last week, BAT had disposed of its factories and two parcels of leasehold land measuring 5.3ha for RM218 million cash to LGB Properties via a public tender.

The disposal came after BAT announced that it would be shutting down its manufacturing operations in Petaling Jaya in stages, as it restructured its business operations in Malaysia owing to an increasingly challenging business environment.

Apart from the sales and purchase agreement of the land, both companies also executed a tenancy agreement for BAT to rent these properties for 12 months for a monthly rental of RM1.09 million.

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