PR1MA to buy affordable homes from Gabungan AQRS for RM314m

KUALA LUMPUR (June 23): PR1MA Corp Malaysia plans to buy 1,140 units of affordable homes, along with the 19.03 acres of land on which they will be built, from Gabungan AQRS Bhd for RM314 million

In a filing with Bursa Malaysia today, the construction company said its wholly-owned unit Gabungan Strategik Sdn Bhd has received a letter of intent (LoI) dated June 21 from PR1MA for the proposed purchase.

Under the deal, the government body, which has been tasked to build affordable housing, will buy the 1,140 units of the company's PR1MA homes, along with infrastructure, facilities and amenities from Gabungan Strategik and AQRS The Building Company Sdn Bhd, being the land owner of the project.

Barring unforeseen circumstances, Gabungan AQRS expects Gabungan Strategik and PR1MA to execute a definitive contract within three months from the date of the LoI.

The project will be on a leasehold residential land measuring approximately 19.03 acres in Putra Perdana, Sepang, Selangor.

It comprises four blocks of 19-storey apartments by a lake side with three different built-up areas namely, Type A (850 sq ft), Type B (950 sq ft) and Type C (1,050 sq ft), to be constructed and delivered by Gabungan Strategik.

Gabungan AQRS said the planning approval of the project will be submitted in July 2016 and approvals from all the relevant authorities are expected to be obtained by the fourth quarter of 2016 and construction works will commence in the first quarter of 2017.

"The project is estimated to be completed in three and a half years," it added.

The group said the move is in line with its strategies to monetise its selected assets.

"The project is expected to increase the construction order book and contribute positively to both the revenue and profits of the construction division," it said.

Upon completion, the sale proceeds of the proposed disposal of land will also contribute positively to the profits of its property development division in addition to reducing its gearing ratio.

As of 12.30pm midday break, shares in Gabungan AQRS were up 0.5 sen or 0.52% at 96.5 sen. It has a market value of RM372.87 million. — theedgeproperty.com

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