CME in RM124m property JV

PETALING JAYA: CME Group Bhd has entered into a joint-venture with Tanah Mestika Sdn Bhd to undertake a mixed development with a gross development value of RM124.42 million in Kuantan, Pahang.
The leasehold land measuring about 5,936 sq m is located next to CME's existing investment properties of 59 units of three storey shop lot offices In Bandar Indera Mahkota.
Tanah Mestika will develop the land, bought by CME for RM6 million in 2013, at an estimated gross development cost of the project is RM100.17 million.
In consideration for the proposed JV, the landowner shall be entitled to a certain number of buildings built on the land with an equivalent value of RM10 million.
The directors of Tanah Mestika are Mohd Ramli Mohamd, Phua Siew Ean and Lam Kam Yau. Lam is also a general manager for the property development and property investment divisions of CME.
Ramli and Phua own 10% and 90% in Tanah Mestika, respectively.
The proposed JV allows CME to unlock the value of the land and at the same time expand its presence in Bandar Indera Mahkota for a potential township development in strategic locations.
CME said the proposed JV is expected to contribute positively to its earnings in the future.