KUALA LUMPUR: MKH Bhd will undertake a property project with an estimated gross development value of RM1bil next to its existing Kajang 2 township development in Selangor.
The property developer (known as Metro Kajang Holdings Bhd prior to April 2011) told Bursa Malaysia that its unit, Suria Villa Sdn Bhd, had signed a joint-venture agreement with landowners Sim See Hua group of companies to carry out housing and/or other types of development on the latter’s 103.05 acres.
The landowners would receive either a minimum of RM238.9mil progressively over eight years or between 20% and 30% of GDV from unit sales depending on the type of development, whichever amount is higher.
MKH noted that the estimated GDV was subject to changes as the development’s layout/building plans had not been finalised.
On the rationale for the venture, the company said the land, located besides its present development, would allow it to strengthen its presence in Kajang and to participate and benefit from the ongoing mass rapid transit development in the Kajang-Semenyih corridor.
MKH expected the development to be completed within seven years from the starting date.
MKH's share price dipped 7 sen to close at RM2.30 on Friday.