KUALA LUMPUR, 29 October 2025 – LBS Bina Group Bhd and Oriental Holdings Bhd have entered into joint-venture agreements (JVAs) to develop an integrated mixed-use project in Klebang, Melaka, with the first phases (1A and 1B) targeting a gross development value (GDV) of approximately RM600 million.
Key Deal Terms & Project Scope
- The JV covers Phases 1A and 1B of the wider master plan, covering about 54.75 acres or roughly 22.16 hectares of land in Klebang.
- Under the terms, Oriental’s subsidiary Ultra Green Sdn Bhd (landowner) will receive 17% of the RM600 million GDV, while the remainder will be for LBS Bina’s subsidiary Business Park Development Sdn Bhd, which will take on development responsibility.
- The project forms part of the larger Straits of Melaka Waterfront Economic Zone (SM-WEZ), a state-led initiative to promote coastal development, logistics, commercial and tourism activity around Melaka.
- Preliminary planning suggests that the development cost may reach about RM490 million, to be funded via internal resources and/or borrowings.
- The development timetable is about five years for the initial phases, with completion expected by 2032.
Strategic Significance for the Companies & Region
For LBS Bina, the partnership represents an opportunity to strengthen its commercial property portfolio in Melaka, leverage state-endorsed infrastructure and capitalise on demand for industrial, logistics and commercial real-estate in the region.
For Oriental Holdings, the deal further monetises its land-bank and aligns with coastal-economic-zone development themes, enhancing value extraction from its asset base.
Regionally, the project aligns with the broader pattern of coastal and waterfront redevelopment in Malaysia, which is increasingly viewed as a driver of premium logistics, industrial, commercial and lifestyle real-estate supply.
Implications for Malaysian Property and Investors
- The size of the GDV (RM600 million) signals confidence in Melaka’s growth trajectory, especially as logistics and industrial linkages expand (e.g., proximity to Tanjung Bruas Port) noted in the filings.
- For listed investors in LBS Bina, this new JV may improve earnings visibility from the commercial property side and bolster the company’s medium-term development pipeline.
- Given the coastal, waterfront and logistics-oriented nature of the project, the deal may attract interest from institutional investors seeking exposure to industrial-logistics and mixed-use real-estate within Malaysia rather than purely residential plays.
- From a risk perspective, meaningful execution lies ahead: development cost discipline, timing of launches, demand absorption for commercial/industrial units, and macro headwinds in property markets remain relevant.
Outlook
The LBS Bina / Oriental joint-venture marks a notable milestone: it demonstrates that major Malaysian developers and holding groups are advancing large-scale integrated projects in growth corridors outside the Klang Valley. As an investor, tracking launch timelines, presales (where applicable), cost-run-rates and leasing momentum will be critical to judging the success of the partnership.
