• The project will be developed on a 20-acre land, the group said in a filing with Bursa Malaysia, without specifying the location of the plot.

KUALA LUMPUR (May 16): Plastic packaging manufacturer Thong Guan Industries Bhd (KL:TGUAN) is teaming up with the Kedah State Development Corporation (PKNK) to jointly develop 221 units of shop and office lots with an estimated gross development value (GDV) of RM200 million.

The project will be developed on a 20-acre land, the group said in a filing with Bursa Malaysia, without specifying the location of the plot.

Thong Guan said that the project aligns with its strategic planning to diversify into property development and grow a new income source.

Under the joint venture, Thong Guan is obligated to pay a guaranteed minimum sum of RM19.75 million, including cash payments of RM15 million in six instalments.

PKNK is entitled to six completed commercial units valued at no less than RM4.75 million. Apart from PKNK's entitlement, Thong Guan retains all proceeds from the project, including unsold units, with no further claims from the agency.

Thong Guan said it has sole discretion to develop the land as deemed appropriate, contingent upon obtaining required approvals within six months.

The company intends to fund the joint development via internal funds, bank borrowings, or corporate exercises, the company said, adding that the project is expected to be completed within five years.

Thong Guan shares closed up one sen or 0.49% to RM2.05, valuing the company at RM825.84 million.

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