MWE to jointly develop RM1.5 bil mixed project in Bukit Raja

KUALA LUMPUR (Dec 1): MWE Holdings Bhd is jointly developing a mixed project estimated to carry a gross development value of RM1.5 billion on nine plots of leasehold land owned by its indirect subsidiary Melati Mewah Sdn Bhd in Bukit Raja, Selangor, with a private developer.

It inked an agreement to effect the partnership with Pristine Primavera Sdn Bhd yesterday, its bourse filing showed.

The proposed project, which will have a mix of residential and commercial properties, will be solely funded via Pristine Primavera’s internal funds and/or borrowings.

MWE’s original cost of investment in the plots of land, which collectively measure 119.09 acres (48.19ha), was RM18.61 million in 1992.

Pristine Primavera is a wholly-owned subsidiary of Newfields Land Sdn Bhd, which is part of financial advisor, property developer and investment company Newfields Group of Companies.

MWE and Melati Mewah also terminated an earlier agreement inked on May 5 to sell the plots to Pristine Primavera for RM54.93 million.

They also cancelled an agreement entered into with Pristine Primavera’s related company — Saujana Setara Sdn Bhd — which would have resulted in the sale of MWE Golf and Country Club Bhd for RM1 plus the settlement of inter-company loans of RM15.17 million owed to Melati Mewah and MWE.

This article first appeared in The Edge Financial Daily, on Dec 1, 2016. Subscribe to The Edge Financial Daily here.