KUALA LUMPUR: Hextar Global Bhd
plans on making its foray into property development via a joint venture between its indirect 70%-owned subsidiary Hextar Landmark Sdn Bhd and Kotaputeri Development Sdn Bhd (KDSB), a subsidiary of Selangor State Development Corp (PKNS).
The parties have inked an agreement to develop about 240.388 acres in Siera Alam, Shah Alam, over 10 years into a RM3.8bil gross development value (GDV) mixed-use project. It will be undertaken by a JV company, Hextar Siera Sdn Bhd, which will be 70% owned by Hextar Landmark with the remaining 30% held by KDSB.
The product mix comprises terrace houses, semi-detached villas, villas and commercial components, complemented by selected high-rise residential, commercial and lifestyle components.
“This marks a transformative milestone for Hextar as we embark on our maiden property development venture. Our partnership with PKNS combines complementary strengths to deliver a thoughtfully planned masterplan that creates lasting value for homeowners, the surrounding community and our shareholders,” said Lee Chooi Keng, group managing director of Hextar, in a statement.
To acquire the development land, Hextar Siera has entered into a sale and purchase agreement with PKNS to purchase the site for RM270mil, which will be funded via a combination of bank borrowings and equity.
In line with stock exchange listing requirements, Hextar will be seeking shareholders’ approval for a proposed diversification of its business to include property development, construction, property investment and management at an extraordinary general meeting as the proposed JV is expected to contribute more than 25% of the group’s net profit or net assets in future.
