Bursa Malaysia Market News, 15 August 2011 – Dijaya JV plans property devt with GDV RM2.8b

Bursa Malaysia Market News, 15 August 2011

KUALA LUMPUR: Dijaya Corp Bhd’s joint venture Magical Heights Sdn Bhd (MHSB) plans to undertake property projects near Johor Baru with a gross development value (GDV) of RM2.8 billion.

It said on Monday, Aug 15 the projects would be built on two pieces of land which MHSB was acquiring from Trident World Sdn Bhd for RM220 million.

Dijaya and Iskandar Waterfront Sdn Bhd each has a 50% stake in MHSB.

MHSB had on Monday entered into a conditional sale and purchase agreement with Trident World Sdn Bhd to acquire the freehold land with a total potential gross area measuring about 227 acres which were acquired for RM220 million.

"The PROPERTIES [] are primarilymixed development consisting of mainly landed residential and commercial lots for sales and with an expected GDV of approximately RM2.8 billion.

"The landed properties are expected to receive sustainable demand in the Johor property market and this is consistent with the group’s business strategy of improving the group’s profitability which will translates into increase in shareholders’ value in the long term," it said.

Dijaya said it intended to fund the proposed land acquisitions and the development cost of the properties through its own funds and/or bank borrowings.