Crest Builder given RM1b rail-property JV project

Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Friday, 26 April 2013 17:44
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KUALA LUMPUR (April 26): CREST BUILDER HOLDINGS BHD []
(CBHB) said it has signed a joint land development agreement (JLDA)
with Syarikat Prasarana Negara Bhd for a mixed development project
located at the Dang Wangi LRT Station in Kuala Lumpur.
Prasarana has appointed CBHB to undertake the full development and
CONSTRUCTION [] of the development with a total development area
of 1.06 million square feet.
The rail-plus-property project involves 50 MRT/LRT station sites to be
developed.
“The proposed development will generate a gross development value
(GDV) of approximately RM1.04 billion, featuring a retail podium,
SOFO, office suites and luxury service apartments,” the company said
in a press release.
Prasarana is being entitled to a 21.2% share of the project’s total GDV,
equivalent to RM220 million.
For CBHB, the project’s total development cost of RM450 million will be
spread over the project’s development period of five years, which
translates to a comfortable RM90 million annual working capital.
The proposed development is expected to start physical works by the
second half of FY2013 with a targeted completion date by year 2018,
the company said.