KUALA LUMPUR: Chin Hin Group Property Bhd
(CHGP) will redevelop a long-stalled site in Bandar Ulu Kelang, Selangor, into a residential project with an estimated gross development value (GDV) of RM883mil.
In a statement, the property developer said its indirect wholly owned subsidiary, Chin Hin Property (Melawati) Sdn Bhd, had entered into a joint development agreement with EC Properties (M) Sdn Bhd to undertake the project.
CHGP said the development will comprise 1,449 serviced apartment units on two freehold land parcels spanning about 27,235 sq m.
Under the agreement, Chin Hin Property (Melawati) will pay RM80mil to secure the exclusive development rights. The payment comprises RM48mil in cash, to be funded through bank borrowings, and RM32mil through the issuance of redeemable preference shares (RPS) at the subsidiary level.
As the RPS are issued at the subsidiary level and carry no voting or dividend rights, CHGP secures a substantial residential pipeline without diluting its listed shares.
The agreement also requires EC Properties to resolve legacy matters relating to the site, including the settlement of claims by previous purchasers, before development can commence.
Subject to regulatory approvals and the fulfilment of conditions precedent, the first phase of the project is targeted for launch in the second quarter of 2027.
The overall development is expected to be completed within six to seven years, with completion targeted by the third quarter of 2033.
CHGP group chief executive officer Chang Tze Yoong said the project would strengthen the group's residential development pipeline in a mature Klang Valley location.
"There is real value in taking a site that has been sitting idle and putting it back to work. This is a sizeable parcel in a mature Klang Valley location where people genuinely want to live, and we have the capacity and the discipline to see a development of this scale through.
“We have structured the arrangement carefully — securing the development rights with a balanced funding approach, while ensuring there is a clear pathway for the legacy matters tied to the site to be worked through under the agreement. That matters to us, because doing this properly means doing it in a way that holds up,” he said.
Chang said the project strengthens CHGP's medium-term residential pipeline and supports its strategy of selectively replenishing its landbank while maintaining balance sheet discipline.
He added that the group would continue to manage execution risks as the project advances through approvals and planning.
The board expects the project to contribute positively to the group's future earnings, barring unforeseen circumstances.
