KUALA LUMPUR: Permaju Industries Bhd has teamed up with OCR Group Bhd to jointly develop a RM1bil project in Kota Kinabalu, Sabah.
In a statement Monday, Permaju Industries said its 70%-owned subsidiary Hardie Development Sdn Bhd (HDSB) has inked a memorandum of understanding (MoU) with OCR’s wholly-owned unit O&C Construction Sdn Bhd (OCCSB) to jointly develop the 44.28-hectare Princess Heights project in Menggatal, Kota Kinabalu, Sabah.
The Princess Heights project is a residential and commercial development that comprises shops, shop-offices, terraced houses, townhouses and a four-storey hypermarket. It is also earmarked for the future development of an e-commerce and lifestyle hub.
Upon completion of Phase 1E of the Project, which consists of the four-storey hypermarket, it will be leased to MYDIN Mohamed Holdings Bhd for a period of 20 years for the establishment and operation of its hypermarket and retail business.
Permaju Industries said the total collectable rental was estimated at RM433mil.
The joint venture between HDSB and OCCSB is expected to accelerate and boost the development progress of the project, as a result of the synergistic collaboration of expertise, resources and experience of both parties.
The profit sharing in relation to the project shall be on a 50:50 basis.
“This MoU is part of Permaju’s overall strategy to diversify into the property development. The Princess Heights Project, which includes the Mydin hypermarket, will capitalise on the opportunities and benefits arising from the growth potential of Sabah’s property market,” Permaju executive director Yvonne Chai Woon Yun.
“Going forward, we believe this project will further contribute to the company’s future earnings and improve its financial performance.
“Sabah remains a vibrant market for properties, with reports stating that the state only accounts for 3% of the total number of unsold properties in the country,” she added.