PETALING JAYA (Dec 9): The Ministry of Housing and Local Government (KPKT) through Perbadanan PR1MA Malaysia (PR1MA) has signed a joint development agreement (JDA) with Sinergi Dayang Sdn Bhd (Sinergi Dayang) — an indirect wholly-owned subsidiary of WZ Satu Bhd — to develop affordable housing in Pahang.

The affordable housing comprise 763 units of two-storey terraced houses and are part of Residensi D’Marina Phase 2 in Kuantan, Pahang, which has an estimated gross development value of RM219 million over four to five years.

Phase 2, which also includes amenities and other relevant infrastructure, is divided into six sub-phases. Work is scheduled to start next July and be completed on Dec 31, 2026.

WZ Satu said the proposed joint venture could contribute to at least 25% of the group’s net profits throughout the duration of the project, while improving its financial performance.

According to the group, the project will be funded by a combination of internally generated funds and borrowings, with the actual proportion to be determined later.

“PR1MA development projects form part of the government’s efforts to provide sustainable housing and community living in urban areas in Malaysia. Therefore, we are pleased to exercise our corporate strategic responsibility to help the target group enhance their chances of owning a home amidst rising property prices. 

“Sinergi Dayang shares the same mission with PR1MA, which is to plan, develop and provide affordable and high-quality homes inspired by modern living concepts for middle-income Malaysians,” said WZ Satu executive chairman Tan Sri Mohamad Norza Zakaria at a signing ceremony on Wednesday (Dec 8).

He added that the collaboration will also extend to Phase 3, depending on the demand.

According to WZ Satu’s filings with Bursa Malaysia on Wednesday, and earlier on Dec 16, 2019, Sinergi Dayang had on Dec 13, 2019 entered into a supplemental agreement to the master en-bloc purchase agreement dated March 18, 2016 with PR1MA and Barisan Arena Sdn Bhd, to recommence the development of Residensi D’Marina.  

PR1MA had acquired the land from Barisan Arena, and then proceeded to appoint Sinergi Dayang to construct and complete the 2,426 units of PR1MA homes, together with 69 retail units. 

However, as at the date of the JDA, the land is pending transfer from Barisan Arena to PR1MA. 

Notwithstanding that, WZ Satu said approvals from the relevant authorities have been granted for the transfer of the ownership of the land to PR1MA, and Barisan Arena has granted power of attorney dated Sept 5, 2016 in favour of PR1MA to enable the latter to deal fully with the land.

PR1MA chief executive officer Datuk Mohd Nazri Md Shariff said the development is a continuation of the Residensi D’Marina Phase 1 project, which is currently at 71.63% of completion. 

“The project provides 523 units and has already sold 96% or 504 units. 74% of Residensi D’Marina Phase 1 buyers are made up of those who are under 35 years of age.

“The previous Residensi D’Marina Phase 1 project has a development value of RM108.97 million, and was also developed by Sinergi Dayang. 

“With the reopening of the economic sector nowadays, we hope the construction sector can be revived, thus stimulating the country's economy," he said.

Housing and Local Government Minister Datuk Seri Reezal Merican Naina Merican said the government, through agencies under KPKT, will ramp up the construction in line with the direction of the 12th Malaysia Plan (12MP), in line with the increased demand for quality affordable housing, especially in strategic locations that are rapidly developing.

“The target that has been set is to build more than 500,000 affordable houses under the 12MP and I hope Government agencies like PR1MA will continue to carry out the mandate given to them more efficiently, effectively and in a trustworthy manner,” he said.

WZ Satu share price settled on Wednesday, 2.38% or half a sen higher to 21.5 sen, valuing the group at RM205.27 million, with 8.54 million shares having exchanged hands.

Get the latest news @ www.EdgeProp.my

Subscribe to our Telegram channel for the latest stories and updates 

Click here for more property stories

SHARE
RELATED POSTS
  1. Budget 2023 wish list – Release government agencies' and GLCs’ surplus land for affordable housing joint ventures
  2. Budget 2023: Housing ministry seeks 100% stamp duty exemption for properties priced above RM500,000 to RM1 mil
  3. KPKT mulls cross-ministry cooperation to improve homestay operation