Crest Builder bags RM1bil Kelana Jaya LRT deal

by **Cals** Mon 23 Dec 2013, 01:32

Published: Saturday December 21, 2013 MYT 12:00:00 AM
Updated: Saturday December 21, 2013 MYT 8:16:57 AM
Crest Builder bags RM1bil Kelana Jaya LRT deal

PETALING JAYA: Crest Builder Holdings Bhd said it has inked a joint venture agreement with Syarikat Prasarana Negara Bhd for a mixed use development integrated with the Kelana Jaya LRT station worth RM1bil, confirming a report by StarBiz.

The construction firm told Bursa Malaysia that its wholly-owned unit Crest Builder International Sdn Bhd had received the letter of acceptance from Prasarana on Tuesday.

Under the joint venture, Crest Builder will develop the 2ha land into serviced residences and offices. As the landowner, Prasarana is entitled to 24.8% of the gross development value, or RM248mil.

Crest Builder said the proposed project would not have any significant effect on its earnings or net assets for the financial year ending Dec 31, 2013, but was expected to contribute positively to future earnings.

StarBiz reported yesterday that Crest Builder had won the bid for the Kelana Jaya LRT land, beating out firms such as Ahmad Zaki Resources Bhd, the MCT group and TH Properties Sdn Bhd.

Its stock rose on the news to a one-year high of RM1.59 before retreating to RM1.53 on profit-taking, up one sen with 4.67 million shares traded. The counter was up 76% for the year.

This would be Crest Builder’s second joint venture with Prasarana to monetise the national public transport owner and operator’s landbank along rail lines.

Crest Builder had bagged in April 2012 the development of an RM1.04bil, 40-storey tower atop the Dang Wangi LRT station along Jalan Ampang in downtown Kuala Lumpur, marking Prasarana’s foray into property development.

For its yet-unnamed Kelana Jaya project, sources had said that Crest Builder was eyeing a gross built-up of over 1 million sq ft and plot ratio of between four and six times the land area, subject to approvals from the local council.

The largely residential development is to comprise two 30-storey blocks of condominiums and one 10-storey block of office suites, all of them linked by a podium. The retail lots at the site, however, would be minimal.