MKH ties up with PR1MA to undertake RM464m mixed project in Kajang

KUALA LUMPUR (Nov 21): MKH Bhd is teaming up with PR1MA Corp Malaysia to jointly develop a piece of freehold land measuring 33,280 square metres (8.22 acres) in Kajang into a mixed project with a gross development value (GDV) of RM464 million.

In a filing with Bursa Malaysia today, the property developer cum plantation player said its unit Metro KL City Sdn Bhd has inked a joint development agreement with PR1MA Corp, the registered proprietor of the land, to effect their collaboration.

Under the tie-up, MKH said Metro KL City will undertake the development of approximately 1,202 units of stratified residential units, together with a commercial area of approximately 42,000 sq ft.

According to MKH, the project is to be developed over three years and the project's profit and cost sharing between PR1MA and Metro will be on a 30:70 basis.

"The total initial capital and investment outlay by Metro in the joint development of the project land is estimated at RM38 million," it said, which is expected to be incurred for initial start-up costs and preliminary works.

MKH plans to finance the initial outlay via a mixture of internally generated funds and/or bank borrowings. To fully finance its part of the project, it may even undertake other forms of fund raising.

The land is situated in Kajang and is strategically located near the existing Kajang commuter train station. It is also linked to the Kajang Mass Rapid Transit (MRT) station, which is under construction.

"The joint development is in line with MKH Group's strategy in collaborating with landowners which own strategically located land banks for the group's future housing development projects," it added.

Shares in MKH closed up six sen or 2.15% at RM2.85, for a market value of RM1.19 billion. — theedgemarkets.com