KUALA LUMPUR (Aug 16): Construction group Mercury Industries Bhd has signed a deal to develop houses on a freehold land in Melaka.

The deal was signed with Aturan Prisma Sdn Bhd, which has obtained approval from the relevant authority to take over as the registered proprietor of the land from Perbadanan PR1MA Malaysia (PR1MA), the group said in a stock exchange filing.

It said the 17,237 sq metre-land in Pekan Tanjong Kling is proposed for a mixed development, including one block of service apartments with 648 units comprising four apartment towers on top of a three-story podium car park.

“The estimated total gross development value of the project is approximately RM152.3 million with an estimated total gross development cost of RM105.6 million,” said Mercury.

The project is expected to commence in the third quarter of 2021 and will be developed over an estimated period of five years using internally generated funds and bank borrowings, it added.

Mercury said the deal will enable the group to participate in the project without an outright purchase of the land which will otherwise require significant cash outlay.

“The group anticipates that the project is strategically located and there may be demand, if the development on the project is priced appropriately. The group intends to focus on strategically marketing its properties to the right target market segments and introduce attractive sales packages to encourage sales,” it added.

Mercury’s share price fell one sen or 0.91% to RM1.09, giving a market capitalisation of RM48.18 million.

Get the latest news @ www.EdgeProp.my

Subscribe to our Telegram channel for the latest stories and updates 

Click here for more property stories