Chin Hin enters JV with Fiamma for RM1.03 bil KLCC 2 project

• KLCC 2 Residence will comprise 924 serviced apartment units, five retail spaces, a three-storey facility podium, mechanical floors, and a car park block.

PETALING JAYA (April 18): Chin Hin Group Property Bhd’s wholly owned subsidiary, BKG Development Sdn Bhd will enter into a joint venture with Fiamma Holdings Bhd to develop a RM1.03 billion mixed-use project near Kuala Lumpur City Centre (KLCC), named KLCC 2 Residence.

According to its exchange filing, the development will be situated on a 1.88-acre leasehold commercial land parcel owned by Sinaran Urusjuta Sdn Bhd, a subsidiary of Fiamma.

Under the agreement, BKG Development will acquire a 70% stake in Sinaran Urusjuta for RM1.17 million, leaving Fiamma with a 30% interest. The project is expected to commence in the second quarter of 2025 and be completed by the first quarter of 2032.

KLCC 2 Residence will comprise 924 serviced apartment units, five retail spaces, a three-storey facility podium, mechanical floors, and a car park block. The site is within walking distance of prominent landmarks such as Suria KLCC, KL Tower, and the KL Forest Eco Park.

As part of the agreement, Fiamma will receive 442,000 redeemable preference shares from BKG Development, entitling it to a redemption value of RM442,000.

Additionally, BKG Development will pay Fiamma RM146.1 million, which includes money owed by Sinaran Urusjuta and the redemption of certain shares. The final amount will be determined closer to the completion date, and BKG Development will arrange for the payment through loans or other financial means.

Upon completion, Sinaran Urusjuta will be reclassified as an associate company of Fiamma.

The deal is considered a related-party transaction, as both Chin Hin and Fiamma share common major shareholders and directors. To ensure fairness for minority shareholders, Fiamma has appointed Eco Asia Capital Advisory Sdn Bhd as an independent adviser.

The project will be financed through a mix of proceeds from the sale of development units, bank borrowings, and internally generated funds, with Chin Hin responsible for managing the full financial scope of the project.

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