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Friday, 11 August 2017

(The Star) OCR unit forms tie-up for Pahang property project

PETALING JAYA: O&C Resources Bhd’s (OCR) 90%-owned subsidiary, O&C Properties (Kuantan) Sdn Bhd, is teaming up with the Pahang State Foundation to carry out a mixed development project in Penor, Pahang.

The project will have an estimated gross development value (GDV) of RM166mil.

The condom and baby product maker, which is banking on property development as its future growth engine, told Bursa Malaysia that the 50:50 joint-venture project would include commercial development and an affordable housing scheme known as the “Priya Scheme” on 100 acres of the foundation’s 814-acre leasehold land.

The intended project, to begin in the first half of its 2018 financial year, will comprise 979 units of 20ft x 70ft terrace houses, 18 units of semi-detached houses measuring 40ft x 90ft, 112 units of semi-detached houses spanning 40ft x 80ft and 41 shop lot offices.

This project stems from the appointment of OCR’s 70%-owned subsidiary, Pangkal Teguh Sdn Bhd, in September last year as project management consultant (PMC) for the foundation’s affordable homes in Pahang.

The affordable housing development scheme will consist of about 25,000 residential units and the PMC contract value is at an average of 4.8% of the GDV.

The OCR group is expected to reap an estimated profit of RM91mil from the consultancy job over a seven-year construction period.

OCR has said that the first phase of development under the project would be situated at Penor, near the Kuantan-Pekan district and less than 20km from the Kuantan town.

OCR was in the red for five financial years up to July 31, 2016, but in the first nine months of this financial year, it reported unaudited earnings of RM2.35mil.