KUALA LUMPUR (June 23): Global Oriental Bhd is teaming up with Malton Bhd for a mixed development project on 38.34 acres of land in Cheras.
Global Oriental's wholly-owned subsidiary Fame Action Sdn Bhd signed the deal today with Malton's wholly-owned unit Layar Raya Sdn Bhd.
The seven plots of freehold land are to be developed as a mixed development at the absolute discretion of Fame Action as the developer, said Global Oriental.
Layar Raya is entitled to 18% of the net development value of the project, "which shall not be less than RM65 million", it said.
The development is expected to be carried out and completed in phases over a five-year period from the date of the development order being approved. Subsequently, the deal can be extended for a further two years subject to market supply and demand conditions.
"At this juncture, the development is still at the planning stage and the details of the mixed development components have yet to be finalised," Global Oriental said.
Shares in Global Oriental closed down 0.5 sen or 1.33% at 37 sen with 156,300 shares traded. The group has a market capitalisation of RM168.23 million.