KUALA LUMPUR (April 22): Can maker Can-One Bhd is partnering a local private developer to build factories and hostel on two freehold plots of land it owns via a subsidiary in Mukim Kapar, Klang, Selangor, that will have an estimated gross development value of RM478.8 million.

Can-One's wholly-owned TOGO Greenland Sdn Bhd (TGSB) inked a development agreement with WorldKlang Group Property Development Sdn Bhd (WKGPD) for the proposed project — dubbed Excellent Technology Park — on the lands, which measure a total of 2.96 million sq ft, its bourse filing showed.

Can-One said the plots were acquired in 2020 at RM103.55 million, and that the development represents an opportunity for the group to unlock the land's potential and realise its investment in the lands without incurring additional borrowings, as WKGPD shall carry out the development at its own costs and expenses.

The project's estimated gross development and costs — including building costs and TGSB's share of profits — are estimated at RM339.3 million. Under the deal, TGSB is entitled to an estimated share of profit of over RM120 million over the five-year development period, subject to completion of the development and the sale of developed units.

“The board is of the view that the prospects of the development is favourable, as the Lands are strategically located within Klang.

“Furthermore, the development is expected to be transformed into a new future one-stop industrial park in Klang, Selangor, complete with the necessary infrastructure, amenities and public utilities,” it said, adding that the project is expected to be completed by 2027.

Shares in Can-One settled one sen or 0.32% higher at RM3.16 on Friday (April 22), giving the group a market capitalisation of RM608.99 million.