KUALA LUMPUR (Oct 19): Trive Property Group Bhd announced that it is in talks to be the turnkey contractor to build affordable housing projects for Syarikat Perumahan Negara Bhd (SPNB), worth RM1.1 billion in gross development value.

Trive Property said its wholly-owned subsidiary Trive Property Sdn Bhd inked a Memorandum of Understanding with Tenaga Meriah Sdn Bhd today to facilitate the talks.

The latter had secured a letter of intent from SPNB’s wholly-owned unit, SPNB Aspirasi Sdn Bhd, to form a joint-venture company.

“The parties have agreed to promptly negotiate exclusively in good faith the detailed terms and conditions of the proposed appointment of Trive Property as a turnkey contractor with the intention to finalize and enter into a definitive agreement for the award,” the firm said in a filing with Bursa Malaysia today.

“The MOU allows the parties to set out the understanding and intention in respect of the proposed appointment of Trive Property as a turnkey contractor for purposes to expand and strengthen the group’s existing business activities in construction and property development,” the firm added.

According to Trive Property, the affordable housing development will comprise 1,775 units of residential condominiums and apartments, 50 units of retail and commercial space, with a central parking podium.

Trive Property said the development is strategically located with neighbouring high-end reputable and matured communities like Desa
Park City, Country Heights Damansara, Mont Kiara and Taman Tun Dr Ismail.

Trive Property’s executive director Kua Khai Shyuan said the mixed development of affordable homes by SPNB “brings timely good news to all, especially since house prices in Malaysia have increased tremendously since 2012, affecting many house buyers.”

“We are proud that we have the possibility to support the government’s initiative in making homes affordable for the rakyat and at the same time have the opportunity to be able to maximise shareholders value of Trive Property,” Kua added.

Trive Property shares closed unchanged at 20 sen today, valuing it at a market capitalisation of RM267.55 million.