Malaysia’s SHL Consolidated Bhd has formed a joint venture (JV) with Japan’s Marubeni Corp to construct a condominium worth RM327 million at Bandar Sungai Long in Selangor, reported The Edge.
Spanning 9.56 acres, the project consisting of 568 condos is located Seksyen 5, Bandar Cheras in Daerah Ulu Langat. It is also near the Sungai Long Medical Centre, the University of Tunku Abdul Rahman and Sungai Long Golf and Country Club.
Construction work is expected to start later this month, with completion targeted by March 2020.
“In addition, the JV will undertake market research on housing demand in the ASEAN region, with the potential of engaging in property development projects in the region,” said SHL in a statement.
Tokyo-listed Marubeni is one of the biggest general trading firms in Japan valued at about 1.204 trillion yen (approx. RM46 billion) at the close of the market on Wednesday (3 May).
According to SHL, its fully-owned subsidiary Sin Heap Lee Development (SHL Development) has entered in to joint venture (JV) agreement with Marubeni’s unit, MC Chance Malaysia Sdn Bhd (MCCM).
Under the contract, MCCM and SHL Development will respectively own a 33 percent and 67 percent stake in the JV firm, which will purchase the condo site from a subsidiary of SHL Development for RM50 million.
The terms stipulate that by 30 April 2018, MCCM must have 59.4 million shares in the JV collectively worth RM59.4 million, while SHL Development must hold 120.6 million stocks with a combined value of RM120.6 million.
The condominium project will be financed via share subscription by the two parties, with SHL Development funding its share in the JV through internally-generated cash.
Its stock price also edged up by one sen or 0.35 percent to RM2.83 at the close of the market on Wednesday, giving it a market capitalisation of about RM685.21 million.
Image sourced from The Star
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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