Astaka signs RM308 mil deal

SINGAPORE (Nov 29): Astaka Holdings Ltd yesterday announced it had signed an RM308 million sale and purchase agreement with the Johor Bahru City Council (MBJB).

Under the deal, Astaka’s 99.99%-owned unit Astaka Padu Sdn Bhd will construct, develop and sell to MBJB a 15-storey Grade A office tower called Menara MBJB, which will house MBJB’s headquarters.

According to a media release yesterday, Astaka Padu and MBJB also intend to enter into a supplemental agreement with a contract value of RM35 million for the interior design of the tower, subject to the consent of both parties regarding the price, design and other related matters.

Approximately 800 MBJB staff will relocate to Menara MBJB, which has been scheduled for completion by end-2019.

With a gross floor area of approximately 445,848 sq ft, Menara MBJB will be located within Astaka’s One Bukit Senyum.

Targeted for completion in 2021, One Bukit Senyum is an upcoming administrative and commercial hub that will serve as Johor Bahru’s central business district.

“A major transformation is under way to rejuvenate Johor Bahru. This will potentially attract a lot of new investments to Johor’s capital city, create jobs and encourage more people to live and work here,” said Johor Bahru mayor A Rahim Nin.

“MBJB’s relocation is part of this transformation and we are very much looking forward to our new premises at Menara MBJB,” he added.

“We are honoured to play a role in Johor’s transformation into a metropolis of the region,” said Astaka chief executive officer Datuk Zamani Kasim.

Shares in Astaka closed flat at 21 Singapore cents yesterday. — theedgemarkets.com.sg

This article first appeared in The Edge Financial Daily, on Nov 29, 2016. Subscribe to The Edge Financial Daily here.