HHRG’s unit bags RM13m deal, 51% stake option in Udaran

• The joint venture will develop two 25-storey towers comprising 372 serviced apartments, nine retail shops, and six floors of car parks.

PETALING JAYA (May 29): HHRG Bhd’s subsidiary, Open Road (East Coast) Sdn Bhd (OREC), has signed deals worth RM13 million and secured the right to acquire up to 51% of property developer Udaran Sdn Bhd as part of a mixed-use project in Kuala Terengganu.

According to its Bursa filing today, the joint venture will develop two 25-storey towers comprising 372 serviced apartments, nine retail shops, and six floors of car parks.

OREC purchased two parcels of leasehold land from construction firm Tregon Sdn Bhd for RM13 million. The lots located in Marang, Terengganu cover 21,585 sq m and are designated for building use. One parcel is valued at RM11 million, the other at RM2 million.

Meanwhile, HHRG entered a three-year call option agreement with Udaran, allowing it to acquire up to 51% equity in Udaran for a nominal fee of RM10.

Under the JVA, OREC will lead and control the development, while Udaran is tasked with project execution and securing RM30 million in financing.

Udaran is also required to obtain key approvals from Lembaga Tabung Amanah Warisan Negeri Terengganu, the state heritage fund that owns the land. If it defaults, OREC has the right to step in and take over the land development agreement.

OREC will invest up to RM10 million in the project but only after all joint venture conditions are met. In the meantime, it will disburse up to RM5.2 million as performance security, subject to Udaran’s compliance.

On May 28, HHRG entered a three-year call option agreement with Udaran, allowing it to acquire up to 51% equity in Udaran for a nominal fee of RM10.

Udaran must secure an unqualified and unconditional approval from the Lembaga Tabung Amanah Warisan Negeri Terengganu to extend the project completion date from August 26, 2024, to a date no earlier than August 26, 2028. Upon completion, profits will be split 51% to OREC and 49% to Udaran.

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