KUALA LUMPUR (May 15): Damansara Realty Bhd is teaming up with a private developer to develop a commercial project comprising 68 units of shoplots on a plot of land in Johor Bahru, with a net development area of 1.17ha.

The shoplots will comprise three-storey and four-storey freehold units, 40 of which will be for non-bumiputera buyers while the remainder will be reserved for bumiputera.

In a bourse filing yesterday, the group’s indirect subsidiary Dac Land Sdn Bhd (DACL) entered into a joint land development agreement with Active Estates Sdn Bhd (AESB) for the project.

Under the agreement, DACL will get a profit guarantee on 40% of the project’s gross development or at least RM41.62 million, whichever is higher at the end of the agreement. The project is expected to be completed in five years.

DACL will be responsible for, among others, delivering vacant possession of the land on which the project will sit on, being the lead consultant and submit plans for the development, and build the project’s main infrastructure.

AESB, in return, will pay for funding costs, procure approvals for the development, pay DACL a guaranteed profit, and be responsible to apply for any revisions or alterations of the project’s approved plan.

DACL and AESB will also establish an exco committee with two representatives from each side, which AESB will chair.

“The exco shall be responsible for the planning, direction and overall management of the development,” the group said.

This article first appeared in The Edge Financial Daily, on May 15, 2019.

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