KUALA LUMPUR (Jan 30): Saujana Triangle Sdn Bhd — a wholly-owned unit of MK Land Holdings Bhd (MK Land), and Mammoth Empire Land Sdn Bhd, will jointly develop a mixed development project on a 11.78 acres plot in Damansara Perdana, Selangor.
In an announcement with Bursa Malaysia today on the joint development agreement, MK Land (fundamental: 1.6; valuation: 3) said the parcel of leasehold land is owned by Saujana Triangle, while Mammoth Empire Land will act as the developer for the project.
Mammoth Empire Land is controlled by Datuk Sean Ng, whose privately-held group has recently attracted attention, having invited socialite Paris Hilton to perform at the group’s RM5 billion Empire City Damansara development just a week ago.
Under the agreement, Saujana Triangle is entitled to RM82.12 million for contributing the parcel of land (at RM160 per square foot) or 22% of the gross development value (GDV) of the development project, whichever shall be the higher.
Mammoth Empire Land is expected to settle Saujana Triangle’s entitlement within a year from the date of the joint development agreement.
MK Land noted the joint development will complement its plan to expedite the development of its land bank in Damansara Perdana. Meanwhile, it also “represents a strategic opportunity for the company to venture into property development, with other reputable developers”.
The joint development is also expected to contribute positively to MK Land, as no source of funding is required from MK Land or Saujana Traingle, since Mammoth Empire Land will be solely responsible to provide the necessary financial strength and resources to meet the development costs of the JV Land.
MK Land closed 1.16% or half a sen lower to 42.5 sen today, with a market capitalisation of RM518 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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