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KUALA LUMPUR (July 1): Yong Tai Bhd has teamed up with PGCG Assets Holdings Sdn Bhd to jointly undertake a mixed development with a gross development value (GDV) of RM510 million in Ijok, Kuala Selangor.
In a filing with Bursa Malaysia today, the garment maker-turned-property developer said it has inked a memorandum of understanding (MoU) with PGCG for the proposed development.
Both parties plan to jointly develop a 22-hectare piece of leasehold land in Puncak Alam, Ijok, and construct 1,039 mixed development properties.
PGCG is a 90%-owned indirect subsidiary of Prime Global Capital Group Inc, a public listed company in the US. It is the registered owner of the land.
As at June 23, the directors of PGCG are Wong Weng Kung, Chai Kok Wai and Jeremy Chia Pei Chai.
According to Yong Tai, the Kuala Selangor District Council has granted the approval for the proposed development, which may include residential and commercial units, on Feb 24 and March 3.
"PGCG shall be entitled to 20% of the final GDV of the mixed development or at such percentage or GDV as may be mutually agreed upon," it said.
Yong Tai said the MoU serves as a formal confirmation of the parties' intention to explore the possibility of a joint venture (JV) to develop the land and construct the mixed development on the land.
It also served to record the parties' intention to negotiate and finalise the terms of the definitive agreement to be entered into for the proposed JV.
"The MoU serves as an outline of the present understanding and commitments between the parties and such terms and conditions are still subject to change prior to the finalisation of the definitive agreement," it added.
Shares in Yong Tai finished the morning trading session at RM1, after gaining two sen or 2.04%, with 5.04 million shares done. It has a market value of RM158.4 million. — theedgemarkets.com
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