MB World Group enters DRA to develop RM176m project
MB World Group Bhd’s wholly-owned subsidiary MB Max Sdn Bhd has entered into a development rights agreement (DRA) with Shiya Sdn Bhd (SSB) to develop 406 apartment units with a gross development value of RM176 million.
In an exchange filing yesterday, MB World noted the DRA will provide the company with the development rights to 6.261-acres in aggregate of landbank located in Mukim Plentong, Johor Bahru as opposed to outright purchase of landbank which will require significant cash outlay.
“This is consistent and in line with the group’s strategic direction to focus on property development activities to sustain its growth through acquisitions, joint ventures, or other arrangements with land owners,” it noted.
MB World added SSB shall be entitled to a sum of RM24 million of consideration and shall be settled and paid in phases, with the first payment of RM2.4 million upon the execution of the DRA, RM10.8 million by Sept 30, 2018, or within 30 days from the date of receipt by the developer of the unconditional development plan.
MB World enters DRA to develop RM176m project