Varia to jointly develop mixed development project in Putrajaya

KUALA LUMPUR (June 2): Varia Bhd (KL:VARIA) has proposed to jointly develop a mixed development project in Putrajaya with United Malayan Land Bhd (UMLand) and Canada-based King George Financial Corp (KGFC).

The group on Friday inked an agreement for the project on a 6.82-acre freehold site in Precint 7 with landowner Cahaya Nusantara Sdn Bhd, a company 51%-owned by UMLand and 49% by KGFC’s unit KGFC (Malaysia) Sdn Bhd.

“The proposed joint development is in line with the group’s strategy to expand its property development business and strengthen its development pipeline,” Varia said in a bourse filing.

Under the arrangement, Varia will undertake the project’s development. Funding will come in the form of internally generated funds, sale of properties and/or bank borrowings, it added.

In terms of the project’s earnings, Varia will be entitled to 84.12% of the net profit from the sale of units, while Cahaya Nusantara will have the remaining 15.88%.

Further details on the project were not disclosed. Varia noted that details of the mixed development project will be decided by a project committee.

No specific project timeline was disclosed, but Varia said the project’s Certificate of Completion and Compliance will be issued within four and a half years from the date of the agreement.

Shares of Varia were last traded at 92 sen, valuing the group at RM397.9 million.

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