KUALA LUMPUR (Oct 20): Trive Property Group Bhd said it had inked a preliminary agreement to negotiate for its appointment as the turnkey contractor to build affordable homes for Syarikat Perumahan Negara Bhd (SPNB) in a project worth RM1.1 billion in gross development value.

Trive Property said its wholly-owned subsidiary Trive Property Sdn Bhd inked a memorandum of understanding with Tenaga Meriah Sdn Bhd.

Tenaga Meriah has secured a letter of intent from SPNB’s wholly-owned unit, SPNB Aspirasi Sdn Bhd, to form a joint-venture company (JVco) to undertake the project.

Tenaga Meriah, said Trive Property, will have a substantial shareholding in the said JVco.

Under the memorandum of understanding, the parties agreed to negotiate exclusively for the proposed appointment of Trive Property as the project’s turnkey contractor, “with the intention to finalise and enter into a definitive agreement for the award”, Trive Property said in a filing with Bursa Malaysia yesterday.

Trive Property said the development, located in Kuala Lumpur, will comprise 1,775 units of residential condominium and apartment towers, 50 units of retail and commercial space, with central parking podium.

Trive Property executive director Kua Khai Shyuan said the mixed development by SPNB “brings timely good news to all, especially [as] house prices in Malaysia have increased tremendously since 2012, affecting many housebuyers.”

“We are proud that we have the [opportunity] to support the government’s initiative to make homes affordable for the rakyat and at the same time to be able to maximise the shareholder value of Trive Property,” Kua said.

Trive Property shares closed unchanged at 20 sen yesterday, giving it a market capitalisation of RM267.55 million.

This article first appeared in The Edge Financial Daily, on Oct 20, 2017.

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