Anzo partners MCCO for RM1.21b Paragon@KL Northgate works

KUALA LUMPUR (May 24): Anzo Holdings Bhd said it is partnering with a subsidiary of a Chinese firm to take part in the construction of Paragon@KL Northgate, a mixed development project carrying a gross development value of RM3.6 billion. 

Anzo's wholly-owned unit Harvest Court Construction Sdn Bhd inked an agreement with MCC Overseas (M) Sdn Bhd (MCCO) to form a consortium to undertake the construction works for the project, which would amount up to RM1.21 billion.

The collaboration came about after Harvest Court Construction received a letter of intent (LoI) in April from KL Northgate Sdn Bhd, the master developer of Paragon@KL Northgate, to take up construction works for the project, according to Anzo in a statement yesterday.

MCCO is the Malaysian unit of China Metallurgical Group Corp (MCC Group), China's leading multidisciplinary and multinational company under the direct supervision of China's State Asset Supervision and Administration Commission, said Anzo.

Located on an 18-acre landbank in Selayang, Selangor, Paragon @ KL Northgate is expected to commence construction at end-2017, said Anzo. 

The mixed-development project will comprise a six-storey shopping mall with a gross floor area of 1.8 million sq ft, 54 units of shop-offices; a 31-storey residential tower with 400 apartment units, a 37-storey block that will house 350 units of serviced apartments, and two hotels. Anzo said an indoor water theme park will also be part of the plan.

"The sealing of the agreement between Anzo and MCC Group today is a significant milestone that will place the consortium in a strong position to negotiate and finalise the contract document and pricing with KL Northgate Sdn Bhd. We expect to complete negotiation process with KL Northgate by the 3rd quarter of 2017,” said Anzo managing director Datuk Eddie Chai Woon Chet in the same statement.

“In addition to being one of the World’s Top 500 companies, MCC Group possesses a strong track record and positive reputation in the real estate industry in Malaysia; having successfully completed several notable projects within the Klang Valley. Anzo intends to leverage on MCC Group’s experience in real estate development to meet our customer’s expectations,” he added.

Anzo shares settled half sen or 2.38% higher at 21.5 sen today, giving it a market capitalisation of RM69.09 million. 

The stock was actively traded yesterday, with 25.08 million shares exchanging hands, making it the 16th most actively-traded stock on Bursa Malaysia. — theedgemarkets.com

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