KUALA LUMPUR: Furniture manufacturer SYF Resources Bhd is beefing up its property development business via a new project in Cheras, Selangor.
SYF Resources diversified into property development in mid-2013 by developing land in Semenyih, Selangor.
The company said yesterday it has teamed up with two landowners to develop 3.3ha of freehold land in Sungai Long into a residential project with a gross development value (GDV) of at least RM160 million.
Its unit, SYF Development Sdn Bhd, has signed joint-venture agreements with Luxmark View Sdn Bhd and Sheeco Properties Sdn Bhd to develop the land.
SYF Development will carry out a residential project comprising condominiums and affordable housing Rumah Selangorku.
It said Luxmar will be entitled to RM16.2 million and Sheeco, RM14.88 million, for the land.
“The total landowners’ entitlement of RM31.08 million was arrived after negotiations and taking into account the expected GDV of at least RM160 million.
“Such entitlement will be paid progressively from the collection of sales proceeds arising from the future development of the land.”
Recently, Insas Bhd emerged as a substantial shareholder of SYF Resources, which was once controlled by businessman Tan Sri Clement Hii, who sold a 20 per cent stake to the company’s executive chairman and chief executive officer, Ng Ah Chai, at 60 sen per share.
As at June 17, Insas owns 27.5 million shares, or about 10 per cent, in the furniture company.
SYF Resources yesterday closed unchanged at RM1.17.