KUALA LUMPUR (Oct 18): Damansara Realty Bhd has inked an agreement for an 11.9-acre development in Putrajaya, Malaysia's federal administrative capital, with a potential gross development cost of RM467.3 million.
In a statement today, the company said its wholly-owned subsidiary Damansara Realty (Johor) Sdn Bhd has signed the agreement with Putrajaya Corporation to develop the Perumahan Penjawat Awam 1Malaysia (PPA1M) project, which will comprise 1,350 residential units and 45 commercial units at Presinct 5, Putrajaya.
The company said the development will be completed by end-2019, and it will recognise revenue from the PPA1M project in the current financial year ending Dec 31, 2016 (FY16).
It said this contribution is expected to increase significantly in FY17.
Damansara Realty group chief executive officer Brian Iskandar Zulkarim said the company is confident of a healthy take-up rate in view of the project's strategic location.
He said a risk mitigating factor is that Putrajaya Corporation has agreed to purchase remaining unsold units after a certain period.
He said this project will play a significant role in Damansara Realty's efforts to accelerate its property development business in various parts of Malaysia.
At 10.52am, Damansara Realty fell 0.5 sen or 0.7% to 71 sen with 29,500 shares traded. It has a market capitalisation of RM221.2 million.