Dijaya to venture into high-end property in Mongolia

KUALA LUMPUR: Dijaya Corp Bhd (DIC) is set to venture into the high-end property market in Mongolia following its acquisition of Transglobal Ltd (TGL) for US$50,000 (RM160,625) for its property development project in Ulaanbaatar in Mongolia.

Initial plans for the eight-acre tract, with an estimated gross development value (GDV) of US$174 million, will consist of a mixed development within three phases comprising two blocks of 20-storey apartments, one block of 5-storey shopping podium and two blocks of 20-storey luxury apartments.

In its statement to Bursa Malaysia on April 7, DIC says the acquisition gives the DIC Group the opportunity to engage in property development projects overseas with good GDV potential and to drive high-earning sustainability in the future. It will also create an opportunity for the DIC Group to venture into the high-end property market in Mongolia in view of the potentially good returns and the relatively low-risk profile of the country.

The scarcity of suitable development land and the increasing demand for prime commercial and residential properties had resulted in high demands for property development in Mongolia, the statement said. The project in Mongolia will also provide an opportunity for the Group to strengthen its earnings in the future and create value for its shareholders.