Da­mansara Realty, China firm in Jo­hor town­ship JV

The Sun (Malaysia) - - SUNBIZ -

PE­TAL­ING JAYA: Da­mansara Realty Bhd is propos­ing to form a joint ven­ture (JV) with China’s Coun­try Gar­den Hold­ings Co Ltd to de­velop an in­te­grated town­ship in Jo­hor Baru.

The com­pany said in a state­ment last Fri­day that the town­ship, to be known as Cen­tral Park, will be de­vel­oped on 53 acres of free­hold land in Te­brau.

The JV, DAC Prop­er­ties Sdn Bhd, will be 30% held by Da­mansara Realty’s in­di­rect wholly owned sub­sidiary Da­mansara Realty (Jo­hor) Sdn Bhd and 70% held by Coun­try Gar­den Man­age­ment Sdn Bhd (CGM), which is wholly owned by Coun­try Gar­den.

The pro­ject will be de­vel­oped over six to eight years, start­ing in the fourth quar­ter of 2016.

Tar­geted at young home buy­ers, the pro­ject will com­prise res­i­den­tial units, com­mer­cial shop spaces and var­i­ous ameni­ties. The first phase will be launched in the first quar­ter of 2017.

The Cen­tral Park site is part of a larger 63-acre land par­cel that Da­mansara Realty will ac­quire for RM141.53 mil­lion, fol­low­ing a devel­op­ment rights agree­ment signed in 2002 and 2003 with Jo­hor Corp (JCorp).

DAC Prop­er­ties will pay RM130.3 mil­lion to JCorp for the 53-acre site while Da­mansara Realty will pay JCorp RM11.23 mil­lion for the re­main­ing 10 acres of land, which com­prises com­pleted shop of­fices and un­de­vel­oped land.

On a pro forma ba­sis, upon com­ple­tion of the pro­pos­als based on the au­dited ac­counts as at Dec 31, 2015, Da­mansara Realty would record an in­crease in the net as­set per share from 37 sen to 51 sen.

Trad­ing in the se­cu­ri­ties of Da­mansara Realty was sus­pended pend­ing the an­nounce­ment of the JV last Fri­day. Trad­ing in its shares re­sumes to­day.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.