KUALA LUMPUR (Oct 23): Milux Corp Bhd, which announced its property diversification last week, said today that its maiden property development in Pahang has been revised to five condominium blocks with retail and club facilities, instead of the six blocks that were originally planned.

In its filing with Bursa Malaysia, the home appliance maker said the estimated gross development value (GDV) of the project is RM2.13 billion, while its gross development cost (GDC) is estimated at RM1.05 billion.

Last week, Milux announced that it is partnering RGF Cabaran Sdn Bhd (RCSB) to jointly develop 12 pieces of land, measuring 25,832.31 sq m in Bentong, Pahang, into a residential property consisting of condominiums.

On Monday, it told the exchange the development would consist of six condominium blocks, with construction expected to begin in June 2017 and complete in December 2020.

Milux also said then that its wholly-owned subsidiary, Milux Properties Sdn Bhd (MPSB), had entered into a joint-venture (JV) cum shareholders' agreement (JVSHA) with RCSB to form a JV company called Phoenix Pentagon Sdn Bhd, to undertake the proposed project, dubbed "Pentagon Genting Highlands".

MPSB would have a 60% stake in the JV company, while RCSB would take up the rest. RGF Land Sdn Bhd, being the holding company of RCSB, is the beneficial and registered owner of the lands. RGF Land is also a major shareholder of Milux, with a 13.78% stake.

Milux said today, for the avoidance of doubt, that the fees payable to Phoenix Pentagon pursuant to the project management agreement (PMA) will be based on 2% of estimated GDC of RM874 million.

The JVSHA is conditional upon, among others, the lawful assignment of the PMA by RCSB to Phoenix Pentagon, within three months from the date of the JVSHA.

Milux said the fees payable excludes provisional sums and expenses in relation to the transfer of individual/strata titles to the purchasers, which do not fall within the scope of responsibility of Phoenix Pentagon under the PMA.

Milux decided to venture into property segment, due to an increasingly competitive market in the household appliances industry, with the hope that the new venture will generate additional income to the group.

Shares in Milux closed unchanged at 92 sen today, for a market capitalisation of RM50.06 million.

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