PETALING JAYA: Construction and property development company Damansara Realty Bhd (DRealty) has entered into a non-binding memorandum of understanding (MoU) with Country Garden Real Estate Sdn Bhd, a unit of Guangzhou-based Country Garden Holdings Co Ltd, to jointly develop a portion of land in Tebrau, Johor Baru.
The venture will be undertaken via a special-purpose vehicle company incorporated under Malaysian laws.
Country Garden has three major projects in the country including the Danga Bay launched in 2013, Semenyih Diamond City in Kuala Lumpur launched in 2014 and Forest City launched in Gelang Patah, Johor this year.
The development of the multi-billion-ringgit Country Garden @ Danga Bay, comprising 9,000 condominium units and a shopping plaza, will be completed and ready for handover by next year.
Danga Bay, part of the ambitious multi-billion-ringgit Iskandar Malaysia project, aims to transform the southern half of Johor into an international metropolis by 2025.
In a filing with Bursa, DRealty said a joint-venture company would be set up for the project.
The company said the parties intended to enter into a definitive joint-venture and shareholders’ agreement. This memorandum will come into effect on the date of signing and will remain in effect for a period of three months.
The agreement may be terminated if either party terminates the memorandum by giving 30 days written notice.
Meanwhile, DRealty group chief executive officer Mohd Fazlin Shah Mohd recently resigned after just one year in service “to pursue his other personal interest”.
Mohd Fazlin Shah, 47, had assumed his current position on Aug 21 last year.
DRealty reported a wider net loss of RM6.02mil in the second quarter of 2016 compared with a net loss of RM4.39mil in the previous corresponding period.
Revenue in the second quarter was flat at RM44.60mil from RM44.92mil previously.
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