KUALA LUMPUR: Pasdec Holdings Bhd’s wholly-owned unit Pasdec Putra Sdn Bhd has signed a development agreement with Sejati Bumijaya Sdn Bhd, for the latter to develop Pasdec Putra’s freehold land at Bandar Putra in Kuantan, Pahang, into residential and commercial properties.

The freehold land measures a total of 154.12 acres (62.37ha) ; and as audited at Dec 31, 2013, the net book value of the land acquired in 2003 is RM16.98 million, Pasdec told Bursa Malaysia yesterday.

Sejati Bumijaya will pay Pasdec Putra 20% of the gross development value (GDV) of the residential development and 25% of the GDV of the commercial development, which is to be satisfied half in cash and half in developed units, which will be payable upon completion of each phase of the developments.

Pasdec Putra is a wholly-owned unit of Pasdec Corp Sdn Bhd, which in turn is a wholly-owned unit of Pasdec (fundamental: 0.65; valuation: 1.8).

Pasdec said the proposed development of the land — which is part of its 448 acres of freehold land in the area belonging to Pasdec Putra — would “speed up” the development of Pasdec Putra’s land bank there.

It added the proposed development would free Pasdec Putra and Pasdec from “additional financial and cash flow burden”.

Shares of Pasdec closed down half a sen or 1.1% to 46 sen, giving the firm a market capitalisation of RM94.75 million.

This article first appeared in The Edge Financial Daily, on January 30, 2015.