Dijaya unit's JV to buy land in Danga Bay for expected RM3.8b development

KUALA LUMPUR: Dijaya Corporation unit Nagasari Cerdas Sdn Bhd has entered into a shareholders' agreement with Global Corporate Development Sdn Bhd to manage a newly incorporated joint venture (JV) company, namely Goldhill Quest Sdn Bhd (GQSB).

In a filing to Bursa Malaysia Securities, Dijaya said the JV was to develop properties in Johor that were expected to generate a gross development value (GDV) of about RM3.8 billion.

Dijaya said GQSB had entered into two separate conditional sale and purchase agreements with Danga Bay Sdn Bhd to acquire two parcels of freehold land. Under the first agreement, it is acquiring land measuring 126,550 square metres equivalent to 1,362,171 square feet for a cash consideration of RM258.81 million or RM190 per square foot.

The second agreement is to buy a land measuring 24,280 square metres equivalent to 261,347 square feet for a cash consideration of RM49.65 million cash, or RM190 psf.

The acquisitions will be funded internally and/or bank borrowings, said the company. Dijaya said the proposed acquisitions were in line with its overall objective of increasing its land bank at strategic locations, especially in the Southern Region of Malaysia, for its future property development activities in the region.

The proposals are also the stepping stone for the Group to kick start its first property development project in the Southern Region and to further establish itself as one of the most prominent and premium property developers in the country, the company said.

"The Properties are expected to generate a gross development value of approximately RM3.8 billion.

"This is also consistent with the Group's business strategy of improving the group's profitability which will translates into increase in shareholder's value in the long term," it said.

Dijaya said the properties form part of the Danga Bay Integrated Waterfront City in the Iskandar Malaysia Region which it said was slated to be a prestigious commercial, residential and leisure areas in the Southern Region of Malaysia.