Gabungan AQRS secures RM314m PR1MA homes deal

PETALING JAYA: Property developer Gabungan AQRS Bhd will build 1,140 PR1MA homes for PR1MA Corp Malaysia in a deal worth RM314 million.
The homes will be built on the developer’s 19.03-acre site in Dengkil, Selangor.
In a filing with Bursa Malaysia yesterday, Gabungan AQRS said its unit Gabungan Strategik Sdn Bhd (GSSB) had received the letter of intent (LOI) for the project, which comprises four blocks of 19-storey apartments.
Construction work on the project will start in the first quarter of year 2017.
The group said the three and a half-year project also involves the land disposal to PR1MA Corp, noting the sale consideration is subjected to the state valuer’s valuation.
Gabungan AQRS said the project is in line with its strategies to monetise its selected assets, adding that the sale proceeds of the proposed land disposal will contribute positively to its property development division and reduce its gearing ratio.
The group said it expects the project would increase its construction order book and contribute positively to both revenue and profits of the construction division.
The group said it will submit the project planning approval next month and expects to secure authorities approval for it by the fourth quarter of this year.
“Barring unforeseen circumstances, PR1MA and GSSB are expected to execute a definitive contract within three months from the date of the LOI,” it added.