DPS to jointly develop RM166.3 mil mixed project

KUALA LUMPUR (April 29): DPS Resources Bhd’s wholly-owned unit Shantawood Sdn Bhd has inked a joint venture (JV) agreement to complete a mixed development with a gross development value (GDV) of RM166.3 million on a piece of freehold land in Tanjung Minyak, Melaka.

DPS said Shantawood’s JV with landowner Biotrend Estate Sdn Bhd (BESB) is to develop the 15.37ha land using an existing master plan endorsed by Majlis Bandaraya Melaka Bersejarah on Jan 25, 2013, and extended on July 24, 2015.

The estimated gross development cost for the project is approximately RM119.2 million, which yields an estimated profit of RM47.08 million to Shantawood, it said.

The landowner’s entitlement is RM40 million. The actual GDV and total cost will depend on the final architectural design and the progressive development of various components, it added.

The plan features 37 units of two-storey shop offices, 182 units of single-storey terrace houses, 80 units of single-storey semi-detached houses, six units of single-storey bungalow houses. It will also include 71 single-storey low-cost terraced houses and one block of four-storey low-cost flats of 168 units.

The development should commence in January 2017, and be completed in 60 months. It is expected to be funded by a combination of bank borrowings and/or internal funds.

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This article first appeared in The Edge Financial Daily, on April 29, 2016. Subscribe to The Edge Financial Daily here.