KUALA LUMPUR (April 20): Crest Builder Holdings Bhd's 51%-owned unit, Landasan Bayu Sdn Bhd, has entered into a joint development agreement with the Malaysian Rubber Board (MRB) for the development of the latter's piece of land at Jalan Ampang, Kuala Lumpur.

According to its announcement to the exchange, the mixed commercial development will comprise retail, premium residences and offices, with a gross development value (GDV) of RM1.33 billion.

Under the agreement, MRB will be entitled to a 22.5% share of the total GDV, with a guaranteed amount of RM299.85 million.

"MRB's entitlement will be paid in cash amounting RM20.72 million and in kind which consist of a corporate office tower and apartments with projected value of RM279.13 million," said Crest Builder.

The group said the agreement will not have a significant impact on its earnings for the financial year ending Dec 31, 2016, but expects it to contribute to its future earnings.

Crest Builder closed unchanged at 91 sen, with a market capitalisation of RM154.73 million.