KUALA LUMPUR: MKH Bhd is teaming up with PR1MA Corp Malaysia to jointly develop a freehold piece of land measuring 33,280 sq m (3.33ha) in Kajang into a mixed project with a gross development value of RM464 million.

In a filing with Bursa Malaysia yesterday, the property developer cum plantation player said its unit Metro KL City Sdn Bhd has inked a joint development agreement with PR1MA Corp, the registered proprietor of the land, to affect their collaboration.

Under the tie-up, MKH said Metro will undertake the development of approximately 1,202 units of stratified residential units, together with a commercial area of approximately 42,000 sq ft.

According to MKH, the project is to be developed over three years and the project’s profit and cost sharing between PR1MA and Metro will be on a 30:70 basis.

“The total initial capital and investment outlay by Metro in the joint development of the project land is estimated at RM38 million,” it said, which is expected to be incurred for initial start-up costs and preliminary works.

MKH plans to finance the initial outlay via a mixture of internally generated funds and/or bank borrowings. To fully finance its part of the project, it may even undertake other forms of fundraising.

The land is situated in Kajang and strategically located near the existing Kajang commuter train station. It is also linked to the Kajang mass rapid transit station which is under construction.

“The joint development is in line with MKH Group’s strategy in collaborating with landowners who own strategically located land banks for the group’s future housing development projects,” it added.