KUALA LUMPUR (Jan 15): HCK Capital Group Bhd, controlled by businessman Tan Sri Clement Hii, is taking over the development of the Empire Remix 2 project in USJ 1, Subang Jaya from Mammoth Empire Holding Sdn Bhd's (MEH) unit True Renaissance Development Sdn Bhd (TRDSB) and rebranding it into an integrated education city development.
This confirms a report by The Edge Malaysia Weekly on Oct 8, 2018 that HCK Capital was seeking to take over the project, which has seen delays since it was first launched in 2012.
Empire Remix 2 is part of an integrated commercial development together with Empire Remix, which would have a combined gross development value of RM1 billion.
Empire Remix 2 comprises one 12-storey tower (A), three 28-storey towers (B, C and D), as well as two floors or associated units and four basement floors, said HCK in a bourse filing today.
HCK, via its indirectly wholly-owned subsidiaries, had already purchased tower A and C from TRDSB in 2012.
HCK said its indirect wholly-owned subsidiary HCK Builders Sdn Bhd has today entered into a joint venture agreement (JVA) with landowner Projek Muara Sdn Bhd and its unit Dergahayu Sdn Bhd, which enables HCK to continue and complete the development.
This was after TRDSB, the original developer, was granted the release from the landowner from its obligations to complete the project.
It added that the total development revenue, costs and expected profits in relation to the development “have yet to be ascertained” as the detailed development plan and the proposed amendments are pending finalisation.
All revenues — including receivables from units already sold — will also be retained by HCK.
Previous reports estimate that new investors will have to fork out at least RM350 million to continue the project.
It was previously reported that MEH has seen hiccups in other development projects such as the RM5 billion Empire City Damansara (ECD1) launched in 2011.
Currently seeking RM800 million to pare debts, the group is also planning to bring in partners or carve out a 65-acre land across ECD1, which was initially meant for another RM7 billion mega project, dubbed Empire City Damansara 2.
Shares of HCK closed unchanged at RM1.26 today, giving it a market capitalisation of RM530.97 million.