Versatile Creative to explore feasibility of RM110 million development in Johor

PETALING JAYA: Versatile Creative Bhd’s sub-subsidiary Versatile Smart Properties Sdn Bhd (VSPSB) yesterday entered into a memorandum of understanding (MoU) with Double Action Ventures Sdn Bhd (DAVSB) to jointly explore the feasibility of developing medium-cost apartments in Johor Baru, Johor with an estimated gross development value (GDV) of RM110 million.
Upon entering into the MoU, VSPSB will conduct an evaluation on the viability and feasibility of the construction project and a due-diligence exercise on DAVSB. Subject to satisfactory results being obtained from the feasibility study and the due diligence exercise, the parties will proceed to execute the necessary definitive agreement.
DAVSB intends to develop medium-cost apartments on a piece of alienated land in Johor Baru measuring 3.183ha.
It aims to do this by working together with VSPSB, whose core business activity is in property development and building construction, and the ability to procure the necessary expertise and resources.
“The MoU is the result of detailed discussions between VSPSB and DAVSB, and it is hoped that a definitive agreement will be drawn up within four months, subject to commercial viability of the project being ascertained for the development of medium-cost apartments,” Versatile Creative said in a stock exchange filing.
The MoU will not have any material effect on earnings, revenue and net assets per share of the company for the financial year ending March 31, 2017 but is expected to contribute positively to the future earnings of the group should the project materialise.