Luster forms JV to develop 3.7ha land in Hulu Langat

KUALA LUMPUR (Nov 3): Precision plastic injection moulding service provider Luster Industries Bhd has entered into a joint venture agreement (JVA) to develop a 3.6725ha piece of land in Hulu Langat into either commercial, residential or mixed development.

In a filing with Bursa Malaysia yesterday, Luster said its wholly-owned subsidiary Luster Hijauan Home Sdn Bhd entered into the JVA with Enrich Realty Sdn Bhd, which is also the owner of the said land, for the development.

Enrich Realty is 50.6% owned by Yee Chee Pang, who is also the director of the company, while the remaining 49.4% is owned by Eastern Environmental Engineering Sdn Bhd.

For Enrich Realty to grant Luster the right to plan and develop the land, a total value of at least RM39 million or up to 22% of the actual gross development value of the said development, whichever is higher, shall belong to Enrich Realty.

Nonetheless, Luster said it is too preliminary at this stage to ascertain the total development value, cost and the expected profit to be derived from the proposed development.

Luster said it will fund the proposed development via a combination of internally-generated funds and bank borrowings.

The group said the JVA is in line with its strategic plans to move into other viable business sectors as a new strategy to diversify into other revenue-generating businesses as part of a longer-term plan to move forward instead of depending solely on its existing core business of manufacturing of precision plastic parts and components and sub-assembly of plastic parts and products and precision engineering work and manufacturing of die-casting components.

Luster expects to complete the JVA in 2022.

The group’s share price gained 0.5 sen or 4% to close at 13 sen yesterday, giving it a market capitalisation of RM247 million.

Year-to-date, Luster’s share price has more than doubled from just five sen on Jan 2 this year. — theedgemarkets.com

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