KUALA LUMPUR (Jan 6): Sentoria Group Bhd 75%-owned subsidiary will co-develop residential and commercial properties with a private property investment company on 120 acres of land in Kuala Muda, Kedah, which marks the property developer and resort operator's first venture in the north.

The project has an estimated gross development value (GDV) of RM180 million, Sentoria said in a Bursa Malaysia filing today.

Sentoria said its subsidiary Sentoria Utara Sdn Bhd (SUSB) today signed a joint venture (JV) agreement with land owner Sejati Pertiwi Sdn Bhd to undertake the development of the freehold land in Bandar Amanjaya, Daerah Kuala Muda, into a mixed development of residential and commercial properties.

"The JV is a strategic alliance for Sentoria to participate potentially in affordable housing development in (the) northern part of Peninsula Malaysia. The JV is expected to contribute positively to the future earnings and thereby improve shareholders' value over the medium to long term," Sentoria said of its rationale for signing this agreement.

It shall take 36 months for SUSB and Sejati Pertiwi to complete the development from the starting date of each phase of the project, it added, and that Sejati Pertiwi would be entitled to 12.5% of the project's GDV.

The 120-acre land is actually one of two land parcels totalling 300 acres that SUSB bought from Ideal Appraisal Sdn Bhd nearly a year ago. Sejati Pertiwi held the 120-acre tract as a nominee for SUSB after the land sale, while the ownership of the remaining 185 acres of land is still in SUSB's hands.

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