KUALA LUMPUR: Duty Free International Ltd said its wholly-owned subsidiary Kelana Megah Sdn Bhd has entered into a conditional joint development agreement with Chin Hin Property (Stulang) Sdn. Bhd to jointly develop a parcel of leasehold land in Johor Baru measuring about 17,342 sqm.
In a filing with Bursa Malaysia, Kelana Megah said it will be entitled to 18% of the total net saleable area of the proposed joint development of not less than 837,152 sq ft, which is estimated by Chin Hin Property to have a gross development value of RM478.2mil, and gross development cost of RM406.42mil.
Accordingly, Kelana Megah's entitlement is estimated at RM83.57mil.
According to the filing, the proposed joint development will comprise two blocks of 1,260 units of serviced apartments, 10 units of retail lots and multiple storey carparks.
The project is expected to commence in the third quarter of 2025 and completed in the third quarter of 2029.
Meanwhile, Kelana Megah had n July 5, 2024, entered into a tenancy agreement with the existing tenant of the land, Berjaya Waterfront Sdn Bhd, to let and grant the right to use part of the land to the tenant on a month-on-month basis.
