PETALING JAYA: OCR Group Bhd and Permaju Industries Bhd’s 70%-owned subsidiary Hardie Development Sdn Bhd will jointly develop a RM1 billion project in Kota Kinabalu, Sabah.
In a filing with Bursa Malaysia, OCR said its wholly owned subsidiary O&C Construction Sdn Bhd signed a memorandum of under-standing (MoU) with Hardie Development for the Princess Heights Project.
The project is located on 44.28ha of land belonging to Hardie Development.
O&C Construction and Hardie Development intend to jointly develop Stage 2 and Stage 3 of the Princess Heights Project on a 50:50 profit sharing basis.
Stage 2 of the project comprises Phase 1E (four-storey hypermarket) and Phase 1F (80 units of three-storey terraced shop/offices).
Meanwhile, Stage 3 of the project has been allocated for future development of commercial and residential properties, including e-commerce and lifestyle hub.
The gross development value of the project, excluding Phase 1E, is estimated at RM1 billion.
Upon completion of Phase 1E of the project, it will be leased to MYDIN Mohamed Holdings Bhd for a period of 20 years for the establishment and operation of its hypermarket and retail business. The total collectable rental is estimated at RM433 million.
Permaju Industries executive director Yvonne Chai Woon Yun the MoU is part of the group’s overall strategy to diversify into the property development.
“The Princess Heights project, will capitalise on the opportunities and benefits arising from the growth potential of Sabah’s property market. Going forward, we believe this project will further contribute to the company’s future earnings and improve its financial performance.”
