JKG eyes residential, commercial development in Bukit Cherakah

KUALA LUMPUR (Dec 8): JKG Land Bhd, formerly known as Keladi Maju Bhd, has teamed up with ISY Holdings Sdn Bhd to jointly develop a 130-acre piece of leasehold land in Bukit Cherakah, Selangor into predominantly residential and commercial properties.

In a filing with Bursa Malaysia today, JKG said its subsidiary Bonava Sdn Bhd has entered into a conditional agreement with ISY for the proposed project.

ISY was alienated the land from the District and Land Office of Petaling, Selangor in 2001. However, the issue document of title for the land has not yet been issued by the relevant authorities.

As such, the proposal is subject to the approvals being obtained from the Shah Alam City Council for the development of the land on terms acceptable to Bonava and if required, the Department of Environment.

Under the joint venture, ISY will be paid RM55 million by Bonava for the land which include the alienation premium.

"The consideration to be paid to ISY will be satisfied by way of cash payment through internal funds," said JKG.

JKG said the proposed project is part of the group's objective and long-term plan to invest in strategic landbank which are located in strategic areas and have development potential in future.

"The proposal is in line with JKG's strategy of expanding its landbank within the Klang Valley to further strengthen its position, market presence in the Klang Valley and gain a meaningful exposure to future upside potential of these landbank," it added.

JKG expects the proposed project to contribute positively to the group's future revenue and earnings and to enhance shareholders' value in the long term.

"Barring any unforeseen circumstances, the proposal is expected to be completed within 24 months from the date of the agreement," it said.

JKG shares closed unchanged at 9 sen today, with 910,300 shares done, bringing a market capitalisation of RM204.74 million.— theedgemarkets.com

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