Nagamas gets PDP role for RM1b project

KUALA LUMPUR (June 12): Nagamas International Bhd's wholly-owned subsidiary Nagamas Venture Sdn Bhd has secured a project delivery agreement to develop a new township in Perak with an estimated gross development value (GDV) of RM1 billion.

In a filing with Bursa Malaysia on Monday, the group said it was appointed the project delivery partner (PDP) by Xtreme New Sdn Bhd, the project owner and the counter party to the agreement, to develop a 204.6ha township comprising commercial and residential properties in Kinta, Perak.

Xtreme New had earlier entered into a joint venture agreement with the land owner, Syarikat Majuperak Bhd, a subsidiary of Majuperak Holdings Bhd, to develop the township.

Nagamas Venture will be responsible for both construction and non-construction aspects of the project. "The agreement is expected to enhance the earnings of the group for FY12 ending Dec 31 as the proposed development is expected to commence in 4Q12," it said in a statement.

As the PDP, Nagamas will develop the conceptual plans and designs as well as arrange for funding and financing, management and administration of sales and marketing, on top of constructing the development.

In return, Nagamas will be entitled to 80% of the total GDV of the project while both parties — Xtreme New and the group — have agreed to ensure that a minimum gross development cost of RM200 million is achieved.

For 1Q ended March 31, Nagamas posted a net loss of RM824,000, almost four times the loss of RM215,000 a year ago. Revenue fell 42.14% to RM2.65 million from RM4.58 million.

This story appeared in The Edge Financial Daily on June 12, 2012.