Tiger Synergy enter into agreements to develop land in Sungei Kendis, Klang

PETALING JAYA: Tiger Synergy Bhd has entered into two separate agreements to develop two plots of land adjacent to each other
in Sungei Kendis , Klang worth a collective gross development value of RM160 million at least.

The first joint venture agreement between Tiger Synergy's Pembinaan Terasia Sdn Bhd (PTSB) and Credence Property Management Sdn Bhd (CPMSB) was executed after an earlier agreement between Tiger Synergy's Tiger Synergy Development Sdn Bhd and CPMSB entered in 2015 for the same plot of land, was terminated. A reason was not given for the termination.

PTSB's deal with CPMSB carries a higher JV sum of RM5 million compared with the earlier arrangement.

In a filing with Bursa Malaysia yesterday, Tiger Synergy said PTSB will bear the entire cost and expense of developing the land while CPMSB will provide the land, which is a freehold plot.

The residential and/or commercial project will take three years to complete and is expected to contribute positively to the future profitability and cash flow of the company, as well as the stability of its future income stream.

Upon commencement of the construction and sale of the units in the project, CPMSB will be entitled to units worth 30% of the RM80 million minimum gross development value (GDV) or at the market value, whichever is higher.

The project is estimated to cost RM36 million. Tiger Synergy will finance the proposed JV with internally generated funds and bank borrowings.

In a separate filing, Tiger Synergy said PTSB has entered into a memorandum of understanding (MOU) with LJ Development (KL) Sdn Bhd to undertake another project on the lot next to CPMSB's in Klang.

The directors in LJ are related to those in PTSB. Tan Li Li and Joanna Yong Hui Fun are respectively the sister and sister in law of Datuk Tan Wei Lian, a director in PTSB. Li Li and Yong are both sisters in-law to Datin Sek Chian Nee, another director of PTSB.

Under the MOU, the two parties agreed to negotiate exclusively the detailed terms and conditions of a proposed JV for the development of a residential and/or commercial project on freehold land in Klang.

Upon execution of the MOU, PTSB will pay a consideration sum of RM3 million to LJ for entering into the MOU.

The terms of the proposed JV will be similar, with LJ providing the land and PTSB bearing the cost of developing the project.

Upon commencement of the construction and sale of the units in the project, LJ will be entitled to units worth 30% of the RM80 million minimum gross development value (GDV) or at the market value, whichever is higher.

Tiger Synergy's share price closed unchanged yesterday at 6.5 sen with 28.83 million shares traded and market capitalisation of RM95.68 million.