KUALA LUMPUR: Global Oriental Bhd
(GOB) plans to develop a mixed development project with an estimated gross development value (GDV) of RM900mil on state government land in Manjung, Perak.
The property developer and houseware trader told Bursa Malaysia that its unit Johan Awana Sdn Bhd had on Friday signed a development rights agreement with Menteri Besar Inc (Perak) to develop the 147.84 acres.
Johan Awana will increase its paid-up capital by alloting 15% of the shares to Menteri Besar Inc (Perak), which will be entitled to a fixed sum of RM23.59mil as landowner’s entitlement.
Johan Awana, as the developer, will be entitled to the GDV less the landowner’s entitlement.
GOB said Johan Awana was responsible for the entire development financing, which would be funded by internally generated funds and/or bank borrowings.
“The proportion of borrowing and internally generated funds will be decided at the later stage,” it added.
Outside of the Klang Valley, the only other place where GOB has a major development project is Penang.
However, last month it sold off a 51% stake in its loss-making wholly-owned subsidiary Penaga Pesona Sdn Bhd, which is developing the Crescentia Park township in Batu Kawan, Penang, for RM41mil cash.
It explained: “The recent entry of major market players into Batu Kawan’s property market coupled with current weak market sentiments have created intense competition and significant challenges for marketing our future development projects in mainland Penang.”
GOB saw the share disposal as an opportunity to redirect its resources to other development projects and investments and at the same time to eliminate exposure to further potential losses which Penaga Pesona might incur.
GOB shares gained 1 sen to 48 sen at Friday’s close, with 2.04 million shares changing hands.
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