KUALA LUMPUR (Oct. 30) : Lagenda Properties Bhd, formerly known as D.B.E. Gurney Resources Bhd, has entered into a memorandum of understanding (MOU) with BDB Land Sdn Bhd, a unit of Bina Darulaman Bhd, to build affordable homes, with the possibility of a recurring partnership between the two parties.
Lagenda said in a statement, under the MOU, both parties will negotiate and endeavour to enter into a joint venture (JV) to develop affordable homes over 230 acres of land in Kuala Muda, Kedah Darul Aman.
Both parties intend to further extend this partnership by developing other parcels of land located within the vicinity of the area, upon successful completion of the proposed development or reaching a certain milestone or sales target, it said.
Lagenda added that the project marks its first affordable housing project outside of Perak.
Prior to this, the group ramped up its involvement in the affordable housing development segment with the acquisition of a 623-acre land in Tapah, Perak and a JV to develop a 230-arce land also in Tapah with another reputable developer.
Despite the challenging outlook of the property market, Lagenda's managing director Datuk Doh Jee Ming opined that the demand for affordable housing remains resilient.
He also said the partnership would enable both parties to share valuable practices and professional knowledge while concurrently catering to the unmet demand.
"As we aspire to become a significant player in the affordable housing segment, we look forward to working with Bina Darulaman who shares similarities [with] us in focusing on building affordable homes, and hope to be involved in more affordable housing projects with them in the near future," said Doh.
At the time of writing, Lagenda rose one sen or 0.55% to 91 sen, valuing the company at RM435.14 million.