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- The deal allows MGB to start getting approvals and launch the project in the third quarter, which is expected to take four years to complete.
KUALA LUMPUR (April 22): MGB Bhd proposes to settle RM7.23 million with joint venture partner Aset AZG Sdn Bhd (AASB) to kick start a serviced apartment project in Cameron Highlands which has been on the back burner for six years.
In a filing with Bursa Malaysia on Tuesday, MGB said its unit Sinaran Kencana Sdn Bhd (SKSB) signed a settlement agreement with AASB to pay a total of RM7.23 million to cover the remaining land cost due to AASB and agreed interest for non-development of the 1.884-acre leasehold land. This fully settles the RM11.45 million land cost already paid by AASB, who owns the land.
SKSB will pay the amount due with RM1.59 million in property units and RM5.5 million in cash.
The deal allows MGB to start getting approvals and launch the project in the third quarter, which is expected to take four years to complete.
The joint venture agreement was originally signed in August 2019 to develop the 1.884-acre leasehold land in Cameron Highlands into a serviced apartment block.
At the time, the project's gross development value (GDV) was estimated at RM107 million. Sinaran Kencana has yet to begin any development on the land.
MGB shares were unchanged at 61 sen on Tuesday’s closing, with a market capitalisation of RM360.91 million. Year to date, the stock is down 13.7%.
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