PRG in Selangor housing project JV

KUALA LUMPUR (July 19): PRG Holdings Bhd plans to develop residential properties in Selangor's Section U5 through a proposed joint venture (JV) with Baycity Park Sdn Bhd. PRG said the JV was an opportunity "to expand its revenue sources."

In a statement to Bursa Malaysia today, PRG said its wholly-owned subsidiary, Premier Gesture Sdn Bhd, signed the development JV agreement with Baycity for the project on a leasehold 2.6ha (6.48 acre) tract. Baycity owns the land.

PRG said Premier Gesture and Baycity had also signed a shareholders agreement, which outlined the shareholding terms in JV company, Premier Baycity Sdn Bhd.

Premier Gesture and Baycity own 51% and 49% respectively in Premier Baycity.

At the signing ceremony here today, PRG's property and construction segment's chief executive officer Datuk Steven Hooi Kok Hoe (pictured) said construction of the apartments was expected to start by end of this year or early next year.

Hooi said the project involved three blocks of apartments. The apartments will be priced at between RM250,000 and RM400,000 each.

"The project will start contributing to the group in 2017," he added. He said the project would be completed in 36 months. — theedgemarkets.com