KUALA LUMPUR: Nexgram Land Sdn Bhd will be involved in mixed developments in Cyberjaya and Putrajaya from mid-2015, with the projects expected to yield a total net profit of RM293 million in the next five years.
Nexgram Land chief executive officer Tey Por Yee said the two projects will be sold to MyAngkasa Bina Sdn Bhd, a wholly-owned subsidiary of Angkatan Koperasi Kebangsaan Malaysia Bhd, for a total value of approximately RM1.5 billion upon completion.
“MyAngkasa entered into an agreement with Nexgram Land to guarantee the purchase of both projects,” said Tey in a press release. A sale and purchase agreement between Nexgram Land and MyAngkasa was inked last December.
Tey said the company will earn net profit of RM262 million from the Cyberjaya development and RM31 million from the Putrajaya project.
The projects mark a milestone in the company’s diversification into property development, Tey added.
The Cyberjaya mixed development, between the Cyberjaya and Putrajaya borders, will comprise 19 commercial shop units, a block of 360 units of high-end small office/versatile office residences, a five-star hotel serviced suite block, and a corporate office tower block. The total estimated development area will cover 1.1 million sq ft.
The Putrajaya development is a joint venture between Nexgram and Top Valley Properties, the owner of the two-acre Malay Reserve land.
The Putrajaya project will see three blocks of 20-storey residential units comprising 439 serviced apartment units.
Tey said there will be more joint initiatives with MyAngkasa around the Klang Valley and nationwide.
This article first appeared in The Edge Financial Daily, on March 20, 2015.