KUALA LUMPUR (Jan 12): Gadang Holdings Bhd has entered into a deal to develop a townhouse project with a gross development value of RM160 million in Taman Putra Perdana, Puchong.

The builder said its indirect wholly-owned subsidiary, Tema Warisan Sdn Bhd, yesterday inked a joint-venture (JV) agreement with Perikatan Progresif Sdn Bhd for the development on a 17.5-acre (7ha) leasehold land.

Perikatan Progresif is the beneficial owner of the land, and under the deal will be entitled to 32% of the net development value, or RM42.688 million, whichever is lower.

Tema Warisan, meanwhile, will be responsible for development approvals and activities for the project, comprising 213 residential land parcels and three parcels for power substations.

“The proposed JV is expected to be completed within 42 months from the date the building plans approval is obtained from the relevant authorities for the development,” Gadang said in a bourse filing.

Gadang’s net profit for the first quarter ended Aug 31, 2016 tumbled 20% to RM 16.62 million, from RM20.86 million a year earlier, on the back of lower revenue as several projects came to completion.

As of October 2016, Gadang’s order book stood at RM603.7 million. The group said in November that it had been actively tendering government infrastructure and building projects worth RM5.2 billion.

Shares in Gadang rose 0.96% or one sen to RM1.05 sen yesterday, with a market capitalisation of RM672.42 million.

This article first appeared in The Edge Financial Daily, on Jan 12, 2017. Subscribe to The Edge Financial Daily here.

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