HCK Capital's unit enters JV for Sarawak apartment project

KUALA LUMPUR (April 8): HCK Capital Group Bhd said its indirect 70%-owned unit HCK Premier Builders Sdn Bhd (HPBSB) has entered into a joint venture (JV) development agreement with Daya Builders Sdn Bhd for the development of apartment units in Kuching, Sarawak.

According to a bourse filing, the 448 units of walk-up apartments will be constructed on a 16.54-acre piece of land.

Under the agreement, Daya Builders, which is an agent for the Housing Development Corp of Sarawak (HDC), has appointed HPBSB as the developer to plan, develop, manage, construct, implement and complete the project.

The project will be developed in three phases, with completion expected within 36 months of the commencement of each phase.

Following the completion of the project, HPBSB will be entitled to 376 units of walk-up apartments. Meanwhile, HDC and Daya Builders will be entitled to 71 units and one unit respectively.

HCK Capital said the project will broaden its earnings base and expand upon its property-related business, in particular property development.

“This is in line with HCK Capital’s intention to continuously seek for suitable and viable acquisition opportunities which may include, among others, acquisition of land bank and property projects to further expand the property-related businesses of the HCK Capital,” it said.

The group said the apartments will be priced within the affordable housing project promoted by the Sarawak government.

The project will be funded via either internally-generated funds, bank borrowings or a mixture of both. The exact breakdown of financing for the project will be determined at a later stage, it said.

“The project is not expected to have any immediate material effect on the earnings and EPS of the HCK Capital for the financial year ending Dec 31, 2016. However, the project is expected to contribute positively to the earnings and EPS of the HCK Capital in the future, once development activities commence on the land,” it added. – theedgemarkets.com

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