Spring Gallery in RM161m Perak joint-venture project

PETALING JAYA: Spring Gallery Bhd is undertaking a joint venture for the development of a residential project on leasehold land measuring 3.3ha in Perak with a gross development value (GDV) of about RM161.2 million.
Spring Gallery told Bursa Malaysia yesterday that its unit Million Rich Development Sdn Bhd and Hasil Senudong Sdn Bhd have entered into a 60:40 joint venture agreement, where the latter will provide the development land and the former will bear the entire development cost.
Barring any unforeseen circumstances, the group said, the two-year project will begin by January 2018.
Spring Gallery said it intends to finance the project with internally generated funds, bank borrowings and/or funds raised from its rights issue of irredeemable convertible preference shares with warrants completed on April 19, 2016.
The exact breakdown of funds will be determined by the management at a later date, it added.
Spring Gallery said it believes that the project will contribute positively to its future earnings and improve its financial position via additional revenue and earnings contribution.