E&O, Mitsui Fudosan to develop luxury residences in Damansara Heights

E&O’s managing director Kok Tuck Cheong: “This is an extension of our earlier successful collaborations on The Mews & Conlay, two noteworthy luxury apartments in Kuala Lumpur City Centre.”

KUALA LUMPUR: Eastern & Oriental Bhd (E&O) and Japan's largest property developer Mitsui Fudosan Co., Ltd are teaming up to build luxury residences in Damansara Heights here.

E&O announced to Bursa Malaysia on Tuesday its indirect unit KCB Holdings Sdn Bhd (KCBH) and Mitsui Fudosan (Asia) Malaysia Sdn Bhd (MFAM), which is also an indirect unit of Mitsui Fudosan would be involved in the joint venture. KCBH will hold a 51% stake in the new JV company and MFAM the remaining 49% in the JV.

“The development land enjoys a strategic address within the highly sought after Damansara Heights location and is slated to be developed into three-storey villas/ condominiums totalling 54 units with a GDV of RM348mil.

“The development is expected to be launched in the second half of 2020 and will contribute positively to the earnings of E&O from 2021 onwards, ” E&O said in the statement on the project.

Under the corporate exercise, the JV company will ink a sales and purchase agreement with E&O's indirect unit Ambangan Puri Sdn Bhd to purchase 14 plots of freehold land along Jalan Teruntung, Damansara Heights measuring 5,962.2 square metres for RM88.33mil.

Both shareholders are committed to advance a total of RM99.33mil in the 51:49 equity proportions to JV to fund the purchase of the land and for working capital purposes. llows:- KCBH will advance RM50.65mil and MFAM RM48.67mil.

E&O said the JV was expected to generate cash flow for the E&O Group whereby the cash together with the total consideration receivable by Ambangan Puri shall be used by the E&O Group for, amongst others, reinvestment in other projects, repayment of bank borrowings and working capital purposes.

The signatories for the JV were E&O managing director Kok Tuck Cheong and MFAM managing director Takehito Fukui.

Kok said E&O was honoured to partner Mitsui Fudosan, Japan’s renowned and reputable property developer.

“This is an extension of our earlier successful collaborations on The Mews & Conlay, two noteworthy luxury apartments in Kuala Lumpur City Centre.

“We are very excited to once again work closely with Mitsui Fudosan, with its vast experience and expertise, in the conceptualisation and development of this exciting new development. Our continuous collaboration represents a strategic partnership with an organisation that shares our vision and values of creating iconic communities of enduring value," he said.

Kok added this JV came at an opportune time as there is ongoing demand for exquisitely designed properties in the most prime locations and the prestige of the Damansara Heights district is what all other residential neighborhoods aspire to become.

“We experienced excellent take-up rate for our earlier projects in this location, namely Seventy Damansara and Idamansara. Riding on our past experiences, we believe that we can bring along further improvements to this project and repeat our earlier success in this niche market and prime location," Kok said.

The first milestone in E&O’s relationship with Mitsui Fudosan was a marketing collaboration agreement with Mitsui Fudosan Realty Co Ltd signed in 2011 to market E&O properties to high net worth clientele of Mitsui Fudosan in Japan.

In 2013, both companies signed an agreement to jointly develop The Mews serviced apartments in Jalan Yap Kwan Seng and in 2015, another agreement was signed to jointly develop Conlay serviced apartments located on Jalan Conlay.

“The E&O-Mitsui Fudosan partnership that began in 2011 has progressed well and resulted in a track record of successful developments such as The Mews and Conlay. Today, we are ready and very happy to progress to the next level, ” Takehito said.