Damansara Realty partners state investment arm in RM771m mixed development

This article first appeared in The Edge Financial Daily, on June 18, 2019.
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KUALA LUMPUR: Damansara Realty Bhd is partnering Negeri Sembilan’s state investment arm, the Menteri Besar Negeri Sembilan (Inc) (MBNSI), to jointly develop a RM771 million mixed development in Bandar Sri Sendayan, Negeri Sembilan.

In a filing with Bursa Malaysia, Damansara Realty said it had accepted a letter of award from MBNSI for the joint-development project on a 50-acre (20.23ha) commercial land owned by MBNSI. The project comprises shoplots, commercial podiums and residential units.

The development profit attributable to MBNSI under the partnership is approximately RM100.795 million, payable in eight tranches.

In a separate statement, Damansara Realty said the development’s phase one is expected to start in January 2020, upon finalising a joint-development agreement with MBNSI, with all phases fully completed in 10 years.

“We are very pleased to have MBNSI as our partner for our first project in Negeri Sembilan. Backed by our strong expertise in residential and township developments and hospital planning, we’re confident that our combined strengths with MBNSI will deliver added advantages and growth to the state’s economy,” said Damansara Realty managing director Brian Iskandar Zulkarim.

According to the group, the 50-acre parcel is near the key growth areas of Seremban, Seremban 2, Sepang and Nilai. It is also within driving distance from the Kuala Lumpur International Airport (KLIA), klia2 and connects to the North-South Expressway and the upcoming Maju Expressway 2 project, expected to be completed in 2020.

Damansara Realty’s share price rose 1.5 sen or 3.33% to 46.5 sen yesterday, for a market capitalisation of RM148.04 million.