KUALA LUMPUR (June 17): Damansara Realty Bhd is partnering the state investment arm of Negeri Sembilan — the Menteri Besar Negeri Sembilan (Inc) or MBNSI — to jointly develop a RM771 million mixed development in Bandar Sri Sendayan, Negeri Sembilan.
In a filing with Bursa Malaysia today, Damansara Realty said it has accepted a letter of award from MBNSI for the joint development project, which will be on a 50-acre commercial land owned by MBNSI. The project will comprise shop lots, commercial podiums and residential units.
The development profit attributable to MBNSI under the partnership is approximately RM100.795 million, to be paid in eight tranches.
In a separate statement, Damansara Realty said Phase 1 of the development is expected to start in January 2020, upon the finalisation of a joint development agreement with MBNSI, with full completion of all phases in 10 years.
"We are very pleased to have MBNSI as our partner, on our first project in Negeri Sembilan. Backed by our strong expertise in residential & township development and hospital planning, we're confident that our combined strengths with MBNSI will deliver added advantages and growth to the state's economy," said Damansara Realty managing director, Brian Iskandar Zulkarim.
According to the group, the 50-acre parcel is located near the key growth areas of Seremban, Seremban 2, Sepang and Nilai. It is also within driving range to Kuala Lumpur International Airport (KLIA), klia2 and is connected to the North-South Expressway (PLUS) and the upcoming Maju Expressway (MEX) 2 Project, which is expected to be completed in 2020.
Damansara Realty's share price rose 1.5 sen or 3.33% to close at 46.5 sen today, giving it a market capitalisation of RM148.04 million.