Yong Tai signs MoU for RM510mil property development


KUALA LUMPUR: Yong Tai Bhd has entered into a memorandum of understanding (MoU) with PGCG Assets Holdings Sdn Bhd to jointly develop and construct mixed development properties in Puncak Alam, Ijok with a gross development value (GDV) of about RM510mil.

In a filing with Bursa Malaysia, Yong Tai said it entered into the MoU with PGCG in respect of the proposed joint venture (JV) to jointly develop approximately 22 hectares of leasehold land located in Puncak Alam, Ijok and construct 1,039 mixed development  properties. PGCG is the registered owner of the land.

The garment maker-turned-property developer said the MoU was not intended to be a legally binding agreement and was meant only to serve as a statement of intention of the company and PGCG.

“The MoU sets out the mutual understanding of each of the parties as to the principal terms and conditions of the proposed JV.

Yong Tai and PGCG have agreed to negotiate exclusively the detailed terms and conditions of the proposed JV with the intention of entering into a definitive agreement.

PGCG is entitled to 20% of the final GDV of the mixed development on the land or at such percentage or GDV as may be mutually agreed upon at a later date between the two parties.

“The estimated GDV for the proposed mixed development project is expected to be approximately RM510mil. The estimated GDV may be revised accordingly during the negotiation of the terms of the definitive agreement,” Yong Tai said.

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