KUALA LUMPUR: Bina Darulaman Bhd (BDB) and OIB Properties (KV) Sdn Bhd will collaborate to build a housing project in Kubang Pasu, Kedah, with a gross development value of RM187.68 million.
The housing project, known as Darulaman Saujana Phase 2, which is a part of the Darulaman Saujana township, will feature 782 single-storey terraced homes.
BDB announced to the stock market today that it has signed a joint venture agreement to collaborate as strategic joint venture partners on the proposed development with OIB.
It stated that, as part of the joint venture consideration, it will get a 25 per cent share of the GDV from OIB, or RM46.92 million.
Being the landowner, BDB will grant OIB development rights so that OIB can plan, construct, and complete an affordable housing scheme in the township.
According to BDB, the project's development aligns with both parties' strategic plans to successfully execute the development by collaborating to capitalise on their respective strengths in construction and property development.
It said a joint venture would be a common business strategy used in coming together to grow faster, increase productivity, and generate the desired profit from the development of the Darulaman Saujana township.
"This will be a strategic opportunity for both parties through shared investment.
and expenses, thus alleviating some of the financial burden placed on each
company and which can bring down the costs on an overall basis," it said.
Both parties will complete developing Darulaman Saujana, which will help supply the B40 and M40 target market with reasonably priced homes in keeping with the objectives and vision of the state, it said.
BDB said that OIB shall be responsible for paying and bearing the development costs incurred from the date of the commencement of this agreement.
It also said that OIB would start development work once the developer obtained all required licenses, permits, and planning approvals, or until vacant possession of the development land was obtained.
The completion date of the project shall be within 72 months from the commencement date of the agreement.
BDB said the proposed joint venture will increase net assets of the company by RM0.02 to RM1.58 per ordinary share, based on the audited financial statements as at Dec 31, 2022.