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OCR plans mixed development of RM700m GDV in Johor

KUALA LUMPUR (May 18): OCR Group Bhd is planning a mixed development on 47.87 acres (19.37ha) of land in Tebrau, Johor, with an estimated gross development value (GDV) of RM700 million.

OCR said its wholly-owned Junjung Simfoni Sdn Bhd had signed a joint-venture (JV) agreement to partner with Casa Bangsar Sdn Bhd, whose largest shareholder is the non-executive chairman of Damansara Realty Bhd, Datuk Ahmad Zahri Jamil.

In a bourse filing yesterday, OCR said the development will encompass two phases spanning over the next five years.

The first phase will consist of 320 units of double-storey link houses of 1,500 sq ft to 1,900 sq ft, with a total GDV of RM185 million.

The second phase will comprise a mixed development, including serviced apartments and a shopping complex, with an estimated GDV of RM515 million.

Under the JV, the profit entitlement will be 70% for OCR and 30% for Casa Bangsar.

OCR said the JV agreement is in line with its strategy to grow and diversify its business operations and to become profitable with sustainable growth.

It also aims to balance its income streams from non-traditional sources in order to lessen any negative sector impact on its traditional businesses.

Looking ahead, OCR said the outlook for the property development industry is expected to have a direct positive impact on the JV.

“Taking into account the outlook for the property development industry moving forward and current efforts undertaken by the group, the board is of the view that prospects for the group are expected to be positive in the future,” OCR added.

OCR gained 0.5 sen or 1.25% to close at 40.5 sen yesterday, valuing it at RM118.42 million.

This article first appeared in The Edge Financial Daily, on May 18, 2018.

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