Ireka, Japan's Hankyu Hanshin to develop RM400m Nilai property project

PETALING JAYA: Ireka Corp Bhd is partnering with Japan's Hankyu Hanshin Properties Corp to develop a property development project called Rimbun Kasia in Nilai, Negeri Sembilan, which carries a gross development value (GDV) of over RM400 million.
At 3pm, Ireka shares were up 5.5 sen or 9.5% to 63.5 sen on some 33,100 shares done.
Ireka said in a statement that Hankyu will take a 45% stake in its wholly owned subsidiary Meadowfield Sdn Bhd, while Ireka will hold the remaining 55%.
Ireka has signed a share purchase agreement with Hankyu for the proposed disposal of an 8.03% stake in Meadowfield for RM6 million.
In addition, Ireka also signed a share subscription agreement with Hankyu for the subscription of a 45.26% stake in Meadowfield by Hankyu for RM50.25 million.
The Rimbun Kasia project, which will be developed by Meadowfield, covers five parcels of residential project and one parcel of commercial project, over a 30.56-acre piece of land located in the town of Nilai.
As a start, Ireka said the joint venture will focus on the development of Dwi@Rimbun Kasia project, consisting of 382 residential units in a nine-storey block, and another parcel of land which will have 465 residential units in two blocks of 29 and 19-storeys developed on it.
The remaining land parcels at Rimbun Kasia will be developed by Meadowfield at subsequent stages following the launch of the first two developments, it added.
"I am very proud that Hankyu Hanshin has selected Ireka to be their development partner as they seek to expand their operations in Malaysia. The Rimbun Kasia development will be their first project in Malaysia," Ireka group managing director Datuk Lai Voon Hon said.
Osaka-based Hankyu Hanshin, a wholly-owned unit of Japan's conglomerates Hankyu Hanshin Holdings Inc, is involved in real estate, urban transportation, entertainment and communications, travel, international transportation and hotels business.