MGB to develop project in Cameron Highlands

PETALING JAYA: MGB Bhd’s indirect wholly owned subsidiary Sinaran Kencana Sdn Bhd has entered into a joint venture (JV) agreement with Aset AZG Sdn Bhd to jointly develop 1.884-acre leasehold land in Cameron Highlands, Pahang.

It told Bursa Malaysia that the group plans to develop the land into a block of serviced apartment with and estimated gross development value (GDV) of RM107 million over a project period of four years.

Under the agreement, both parties agreed to enter into an unincorporated JV to share all expenses, profit or losses from the project on an equal 50:50 basis.

MGB said the JV represents an opportunity for the group to further capitalise on its experience and expertise in property development.

“This bodes well with the group’s strategy to grow its property development segment either through acquisition of small scale landbank or JVs with landowners.”

The JV development is expected to contribute positively to MGB’s future earnings.