Compugates' Dengkil property project to kick off next year

PETALING JAYA: Compugates Holdings Bhd expects its property joint venture (JV) to start contributing to its earnings in the second half of 2017.
Managing director Goh Kheng Peow said the 38 acre commercial project in Dengkil will kick off next year once the building plans are approved and development order is obtained. The project is now pending approval for its road planning application.
Shareholders approved its proposed JV, proposed diversification into property investment holding and proposed par value reduction at an EGM today.
Under the JV, Compugates' 70%-owned sub-subsidiary Compugates Development and Mining Sdn Bhd (CDMSB) will jointly develop the leasehold land with Main Uptown Sdn Bhd.
The project has a gross development value (GDV) of RM1 billion and will be developed in seven phases over 10 years. The parties are targeting a GDV of RM1.5 billion, subject to the final approved development proposal by Main Uptown.
CDMSB is entitled to 22% of the combined GDV, which is RM220 million based on the minimum RM1 billion GDV.