Permaju, OCR to jointly develop RM1b GDV project in Kota Kinabalu

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KUALA LUMPUR (March 25): Permaju Industries has partnered with OCR Group Bhd to complete a residential and commercial development with an estimated gross development value of RM1 billion in Kota Kinabalu.

Permaju said its 70%-owned subsidiary Hardie Development Sdn Bhd (HDSB) has inked a memorandum of understanding (MoU) with OCR’s wholly-owned unit O&C Construction Sdn Bhd (OCCSB) to jointly develop the 44.28-hectare Princess Heights project in Menggatal district.

The project comprises shops, shop-offices, terraced houses, townhouses and a four-storey hypermarket. It is also earmarked for the future development of an e-commerce and lifestyle hub, Permaju said in a filing with Bursa Malaysia today.

“Upon completion of Phase 1E of the project, which consists of the four-storey hypermarket, it will be leased to Mydin Mohamed Holdings Bhd for a period of 20 years for the establishment and operation of its hypermarket and retail business,” Permaju added in a separate statement.

The group said total collectable rental is estimated at RM433 million.

The parties will enter into a definite agreement to set forth their scope of joint venture, upon performing their respective due diligence, it added.

It said profit sharing in relation to the project will be on a 50:50 basis.

“This MoU is part of Permaju’s overall strategy to diversify into property development,” Yvonne Chai Woon Yun, Permaju's executive director, said.

Sabah, she noted, remains a vibrant market for properties, with reports stating the state only accounts for 3% of the total number of unsold properties in the country.

Additionally, Chai said the rental for ground-floor shops remain stable, particularly in prime areas like central Kota Kinabalu, which continue to secure premium rental yields.

Shares of Permaju closed half a sen or 1.04% lower at 47.5 sen, giving a market capitalisation of RM88.95 million.

OCR’s shares, meanwhile, closed unchanged at 25.5 sen, valuing the company at RM82.08 million.