Eastern & Oriental Bhd (E&O) and its joint venture (JV) partner Mitsui Fudosan Co., Ltd plan to launch their latest luxury residential development in Kuala Lumpur in the next three to six months.
They are planning to build 54 units of three-storey villas/condominiums. With a gross development value of RM348 million, each three-storey villa could easily be worth more than RM6 million.
"Depending on the size of the villa, RM6 million or more is a fair value as they are both branded developers. I believe the JV partners will be able to get buyers from Malaysia and Japan as Damansara Heights is an exclusive neighbourhood and it is very strategically located," said a marketing consultant.
In a filing with Bursa Malaysia last week, E&O said the development land enjoys a strategic address within the highly sought after Damansara Heights location and the project will contribute positively to its earnings from 2021 onward.
The proposed development, located along Jalan Teruntung in Damansara Heights directly opposite detached houses is expected to commence in the third quarter of this year, and to be ready in four years.
E&O said its indirect unit KCB Holdings Sdn Bhd (KCBH) and Mitsui Fudosan (Asia) Malaysia Sdn Bhd (MFAM), which is also an indirect unit of Mitsui Fudosan, Japan's largest property developer would be involved in the JV development.
KCBH will hold 51 per cent stake in the new JV company and MFAM the remaining 49 per cent.
E&O managing director Kok Tuck Cheong said this JV came at an opportune time as there is ongoing demand for exquisitely designed properties in the most prime locations and the prestige of the Damansara Heights district.
“We experienced excellent take-up rate for our earlier projects in this location, namely Seventy Damansara and Idamansara. Riding on our past experiences, we believe that we can bring along further improvements to this project and repeat our earlier success in this niche market and prime location," Kok said.
Kok said E&O was honoured to partner Mitsui Fudosan for this latest venture.
The partnership, its third JV with Mitsui Fudosan, is an extension of its earlier collaborations on The Mews & Conlay, two noteworthy luxury apartments in Kuala Lumpur City Centre.
In 2013, both companies signed an agreement to jointly develop The Mews serviced apartments in Jalan Yap Kwan Seng and in 2015, inked another agreement to jointly develop Conlay serviced apartments located on Jalan Conlay.
“We are very excited to once again work closely with Mitsui Fudosan, with its vast experience and expertise, in the conceptualisation and development of this exciting new development. Our continuous collaboration represents a strategic partnership with an organisation that shares our vision and values of creating iconic communities of enduring value," he said.
The partnership with Mitsui Fudosan is expected to continue to create greater awareness of the E&O group’s profile in the Japanese property market. It is expected to attract Japanese purchasers for the project in Damansara Heights and other developments undertaken by the E&O group.
E&O said, the collaboration of both partners will also enhance the overall product through design, positioning and quality, as well as pave the way for future collaborations between both parties.