Share
- 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%.
Want to have a more personalised and easier house hunting experience? Get the EdgeProp Malaysia App now.
TOP PICKS BY EDGEPROP
Seksyen 25, Shah Alam (Taman Sri Muda)
Shah Alam, Selangor
Kota Kemuning New Launch Resort Themed Condo 4 bedroom! Limited unit!
Kota Kemuning, Selangor
Kota Kemuning 4B2R Free Furnished Condo only monthly 2k!
Kota Kemuning, Selangor
The Parque Residence @ Eco Sanctuary Kota Kemuning
Kota Kemuning, Selangor
Seksyen 25, Shah Alam (Taman Sri Muda)
Shah Alam, Selangor
Shah Alam NEW LAUNCH Resort Concept 4 bed Sky condo!
Kota Kemuning, Selangor
LAST 4 bedroom Condo Monthly 1.8k get at Kota Kemuning!
Kota Kemuning, Selangor
Razak City Residences
Salak Selatan, Kuala Lumpur
Casa Sutra, Alam Nusantara
Setia Alam/Alam Nusantara, Selangor
Nusari Aman 3 @ Bandar Sri Sendayan
Seremban, Negeri Sembilan
