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Thursday, 12 January 2017

(The Star) Gadang enters into JV deal

PETALING JAYA: Gadang Holdings Bhd has entered into a joint-venture (JV) agreement with Perikatan Progresif Sdn Bhd (PPSB) or the landowner for the proposed development of a parcel of leasehold residential land, measuring approximately 17.5 acres located at Taman Putra Perdana, Puchong, with an estimated gross development value of RM160mil.
Gadang’s indirect wholly owned subsidiary, Tema Warisan Sdn Bhd (TWSB), plans on developing the land into a residential development comprising town houses, according to its filing with Bursa Malaysia yesterday.
It said in consideration of PPSB agreeing to the JV for the development of the land, PPSB shall be entitled to 32% of the net development value or the entitlement sum of RM42.688mil, whichever shall be lower.
It added that TWSB as the developer will be responsible to procure all the development approvals from the relevant authorities, as well as to undertake all the activities to complete the development, which include among others, marketing, construction, funding of the development and delivery of PPSB’s entitlements.
The proposed JV is in line with the ordinary course of business of Gadang, which is in construction and property development.
“Gadang is of the view that given that the land is strategically located within the Puchong area, which is a prime location, coupled with the connectivity to a few major highways, the proposed JV and the development will enhance the group’s future earnings.
“The proposed JV will also enhance the reputation and track record of Gadang as a property developer in Malaysia.

“Gadang proposes to use its internally generated funds or external borrowing for the implementation of the development,” it said.