KUALA LUMPUR (Jan 2): MB World Group Bhd (MBW) has secured the rights to develop an integrated waterfront in Johor that has an expected gross development value (GDV) of RM1.46 billion.

MBW’s wholly-owned subsidiary, Danga Palm Sdn Bhd (DPSB), had on Dec 31 entered into a development right agreement with PIJ Property Development Sdn Bhd (PPDSB) for the mixed development, the property developer said in a filing with Bursa Malaysia today.

Located within Teluk Jawa, Johor Bahru, the development will sit on approximately 49.62 acres of leasehold land, including 15 acres belonging to the government. It will comprise both commercial and residential components, including a service apartment, affordable houses, townhouses, shop offices and a shopping mall.

“The first phase of the development shall be the affordable housing project of Rumah Mampu Milik Johor (RMMJ) known as Taman Perbadanan Islam Telok Permata, measuring approximately 15 acres,” MBW said.

PPDSB, which was formerly known as Perisind Property Development Sdn Bhd, will be entitled to 7% of the development’s GDV or a minimum of RM100 million.

According to MBW, the agreement provides access to development rights without the need for an outright purchase of the land, which would have required a significant cash outlay.

On top of this, PPDSB had already obtained approval to use the development land for building purposes.

“This will allow the group to commence the development project in a short span of time and is consistent with our strategic focus on property development activities through acquisitions, joint ventures or other arrangements with land owners,” MBW said.

Under the agreement, DPSB is expected to complete the project within ten years from the date of the agreement, as well as obtain all relevant approvals at its own expense.

The agreement is expected to contribute positively to MBW’s future earnings, with profit to be realised in stages over the tenure of the project, the group said.

Shares in MB World were unchanged at RM2 after resuming trade at 10am today, following a one-hour suspension. The group had a market capitalisation of RM314.75 million.

Source: https://theedgemalaysia.com/article/mb-world-develop-rm146b-waterfront-johor