Tiger Synergy enters into JV for Klang development, with GDV of at least RM80 mil

KUALA LUMPUR (April 29): Tiger Synergy Bhd has entered into a joint-venture agreement with Credence Property Management Sdn Bhd (CPMSB) to undertake a residential cum commercial development project in Klang, Selangor.

According to a filing with Bursa Malaysia, CPMSB will contribute the development land while Tiger Synergy will bear the cost of development.

The cost of the entire project is estimated to be approximately RM36.34 million and is expected to be completed three years from the date of obtaining relevant approvals from authorities.

Further, Tiger Synergy would also have to pay RM3 million as consideration sum to enter the joint venture.

In exchange for contributing the land, CPMSB will be entitled for 30% of the total gross development value (GDV) of the project, which is slated to have a minimum GDV of RM80 million.

“The proposed joint venture will enable the company to participate and benefit from the business venture and is expected to contribute positively to the future profitability and the cash flow of the company as well as the stability of its future income stream,” said Tiger Synergy.

Tiger Synergy’s share price closed unchanged at 11.5 sen today. This gives it a market capitalisation of RM85.16 million.