PETALING JAYA (Oct 5): Astaka Padu Sdn Bhd, an indirect subsidiary of Astaka Holdings Ltd has entered into a joint venture with Saling Syabas Sdn Bhd to develop a 258.48-acre township in Pengerang, Kota Tinggi, Johor Bahru.
Astaka Padu and Saling Syabas will jointly develop the land located close to the Pengerang oil and gas hub in southern Johor under Bukit Pelali Properties Sdn Bhd where Astaka Padu holds a 51% stake and Saling Syabas holds the remaining 49%.
Saling Syabas is an associate of Astaka’s controlling shareholder, Datuk Daing A Malek who has a 95% equity interest in Saling Syabas while the remaining 5% is held by Astaka’s executive director and chief executive officer Datuk Zamani Kasim.
In a statement today, Astaka Padu said the Bukit Pelali project will be the closest sizeable township to Pengerang, one of the region’s largest hubs for oil and gas, petrochemical, oil storage and trading activities.
Under the conditional joint development agreement, Bukit Pelali Properties has the sole and exclusive right to develop Bukit Pelali project and the absolute right and authority to sell the properties in the project.
Comprising mostly residential units and commercial shop lots, the Bukit Pelali project will also represent Astaka Padu’s second most important project after its flagship development, One Bukit Senyum, which will be the new administrative and commercial hub of Johor Bahru, adjoining Singapore.
According to Astaka Padu, the Bukit Pelali project is in line with the group’s strategy to reduce business risks associated with a single development project and diversify the group’s current project development portfolio. The project is expected to commence in 2017.
“We are confident that the Bukit Pelali project will lift Astaka’s profile as a leading integrated property developer just as One Bukit Senyum has done. We will focus on a high-quality product which will set a standard for such developments in this region,” said Astaka Padu’s Zamani.
Meanwhile, Daing said: “Bukit Pelali is a major second project after One Bukit Senyum which underscores Astaka Padu’s commitment to enhance shareholder value by rapidly securing and executing quality projects with significant potential.
“Demand for the project is expected to be strong considering the scope and scale of activities in Pengerang,” he said.
This article first appeared in The Edge Financial Daily, on Oct 5, 2016. Subscribe to The Edge Financial Daily here.
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