PRG Holdings Bhd and Baycity Park Sdn Bhd signed a joint venture agreement to develop a high-quality affordable apartment project in Subang Bestari (Seksyen U5), Shah Alam. This project will comprise of 650 units in total, which will be priced between RM250,000 and RM450,000 each.
The project is estimated to be opened to the market by the end of this year, and will be completed within 36 months after the project launches.
According to the agreement, both firms formed a joint venture company named Premier Baycity Sdn Bhd. PRG’s unit Premier Gesture Sdn Bhd holds a 51% stake in this JV firm and Baycity Park holds the remaining 49% stake. The firm will be in charge of the project execution and management, as well as the unit sales on behalf of Baycity Park.
Meantime, Premier Gesture will pay RM11 million to Baycity Park, which owns the 6.48-acre land used for the development.
The units will have built-ups ranging between 800 sq ft and 1,000 sq ft, and will be funded via internal cash flow, sales and bridging loans. The project’s gross development value (GDV) is yet to be determined as it is still at a preliminary stage.
According to PRG group managing director Datuk Lua Choon Hann, this is a great opportunity for the firm to venture into affordable housing development as the medium-range housing is still very much lacking.
Image: Sourced from The Star
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email mangales@propertyguru.com.my
