LBS Bina Divests Johor Land for RM110 Million — Strengthening Focus on High-Growth KL Property Market

In a strategic realignment of its property portfolio, LBS Bina Group Bhd has announced that its indirect wholly owned subsidiary, Sinaran Restu Sdn Bhd (SRSB), will dispose of two prime parcels of land in Johor Bahru city centre for RM110 million cash.

The transaction, finalised under a sale and purchase agreement signed on November 11, 2025, marks a key step in LBS Bina’s ongoing effort to optimise capital allocation and strengthen its focus on core developments within the Klang Valley, Malaysia’s most dynamic property market.

The buyer, Asiana Square Sdn Bhd, will pay 10% upon signing and the remaining 90% by September 7, 2026, subject to approvals from local authorities expected by April 2026.

Prime Johor City Land, Strategically Located Near CIQ and Persada Johor

The two parcels of land, measuring a total of 8,267 square metres, are located along Jalan Dato’ Dalam, a key address in the heart of Johor Bahru city. The site lies just 700 metres from the Customs, Immigration and Quarantine (CIQ) Complex and is within walking distance of the Persada Johor International Convention Centre.

The area is well-connected via major thoroughfares, including the Tebrau Highway and the Tun Razak/Senai–Skudai Highway, offering quick access to Singapore through the Johor–Singapore Causeway.

Comprising one leasehold parcel (expiring in 2099) and one freehold parcel, both lots are currently vacant and zoned for building use — positioning them for future mixed-use or high-rise commercial developments.

Sinaran Restu originally acquired the sites in 2013 and 2014, and the land has appreciated substantially since then, allowing LBS to unlock significant value through this sale.

RM45 Million Gain Expected — Strengthening Balance Sheet and Liquidity

According to LBS Bina’s filing with Bursa Malaysia, the group expects to record an estimated gain of RM45 million from the disposal, based on the land’s book value of RM64 million as of December 31, 2024.

The sale will also improve the group’s gearing ratio from 0.46 to 0.43, signalling a stronger balance sheet and greater financial flexibility to fund upcoming developments.

“The disposal enables the group to realise gains from the land’s appreciation in value and redeploy capital into projects in the Klang Valley, where demand and infrastructure are stronger,” the company said in a statement.

LBS added that the transaction was conducted on a willing buyer, willing seller basis, taking into account an independent valuation of RM84 million, confirming that the RM110 million sale price represents a healthy premium to market value.

No shareholder or director has any interest in the deal, and shareholder approval is not required.

Aligning with LBS Bina’s “8×8 Strategy” for Growth

The disposal forms part of LBS Bina’s “8×8 Strategy” — a corporate plan aimed at enhancing long-term shareholder value through eight strategic focus areas across eight years. One of the key pillars of this strategy is landbank optimisation, which involves monetising non-core or underutilised assets to fund projects in high-demand locations.

This approach allows the group to focus on fast-turnaround, high-impact developments within established urban areas such as Kuala Lumpur, Selangor, and the Klang Valley, where infrastructure, employment, and connectivity continue to drive sustainable property demand.

By rationalising its landbank, LBS can strengthen its development pipeline, improve capital efficiency, and support affordable and mid-range housing projects, which remain the group’s core market segment.

Capital Shift Toward Klang Valley: The Core of Malaysia’s Property Market

The Klang Valley remains Malaysia’s most robust real estate engine, accounting for over half of all property transactions nationwide. With its extensive transport networks, rising urban population, and new infrastructure like the MRT3, Kuala Lumpur–Putrajaya Expressway, and High-Speed Rail (HSR) connectivity to Johor, the region continues to deliver strong fundamentals for both developers and investors.

For LBS Bina, reinvesting proceeds from the Johor land sale into KL property projects allows the company to capitalise on this growth momentum. The group’s flagship developments — such as LBS Alam Perdana, Kita @ Cybersouth, and Bukit Jalil projects — have consistently recorded positive take-up rates among homebuyers seeking well-priced, quality homes near Kuala Lumpur.

This strategy positions LBS to benefit from renewed urbanisation trends, particularly as younger Malaysians enter the housing market and as infrastructure-led growth boosts suburban demand.

Johor’s Market Still Holds Strategic Potential

While LBS Bina is refocusing its investments toward the Klang Valley, Johor continues to present long-term potential — especially with the Johor–Singapore Special Economic Zone (JS-SEZ) and RTS Link project enhancing cross-border connectivity.

The land sale to Asiana Square reflects market confidence in Johor Bahru’s continuing transformation as a southern growth hub, supported by increased foreign investment and regional trade.

Asiana Square’s acquisition of the Jalan Dato’ Dalam parcels — located just minutes from Singapore — hints at the city’s ongoing appeal for commercial, hospitality, and mixed-use developments aimed at international businesses and cross-border professionals.

A Strategic Realignment for Sustainable Growth

LBS Bina’s RM110 million land sale signals more than just a transaction — it’s a strategic realignment designed to strengthen the group’s liquidity, sharpen its focus, and ensure long-term growth sustainability.

By unlocking value from mature assets and reallocating capital into Malaysia’s most dynamic property corridor, the group is positioning itself to ride the next wave of urban expansion driven by Klang Valley infrastructure, digitalisation, and housing demand.

This decision also underscores a broader market trend among Malaysian developers — a pivot toward core, high-demand regions where integrated transport, employment, and affordability create enduring real estate value.

Conclusion: Refocusing for Future Growth

The sale of LBS Bina’s Johor Bahru city land marks another decisive move in the company’s evolution toward leaner, more strategic growth. As it channels fresh capital into high-impact projects within the Klang Valley, LBS continues to solidify its reputation as a developer that balances strategic foresight with financial discipline.

For investors, this realignment reaffirms the group’s confidence in Malaysia’s central property corridor and the long-term strength of KL property as an anchor for sustainable returns.

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