PETALING JAYA: GFM Services Bhd will be expanding its portfolio of concession assets with the proposed development of a second rest and service area.
The integrated facilities management service provider said in a statement that it had entered into a heads of agreement with Majuperak Holdings Bhd’s wholly-owned subsidiary, Jua Juara Sdn Bhd.
The agreement was signed with the intention to form a joint venture (JV) to develop, operate and maintain the rest and service area at Hulu Bernam, Perak, along the North-South Expressway.
Under the agreement, GFM and Jua Juara would enter into a definitive JV agreement within six months.
Concurrently, the land would be in the process of being converted from an agriculture title to commercial, of which thereafter the JV would apply to obtain the required approval from the Malaysian Highway Authority to develop the proposed rest and service area.
GFM executive vice-chairman Ruslan Nordin said the JV was in line with the group’s aim to accelerate its growth while expanding its recurring income stream.
“There is a lot of potential to be reaped from this venture. The rest and service area will feature high-end public infrastructure, which includes ample parking space, restrooms and surau.
“We are confident that these modern amenities will form the pull factor for the intended retail spaces with food and beverage facilities consisting of a wide variety of food and retail stalls,” Ruslan said.
He said the development of petrol stations at the rest and service area is also in the works, which GFM will build, own and operate.
“Tapping on our expertise in facilities management, GFM will also become the facility manager in maintaining the rest and service area facility upon completion, further solidifying our order book,” he added.
GFM’s shares closed unchanged at 21 sen yesterday, while Majuperak’s shares rose 1.5 sen to 37 sen.