KUALA LUMPUR (March 7): Retro Highland Sdn Bhd, the 50:50 joint venture between S P Setia Bhd and Tradewinds Corp Bhd, has signed a master agreement with Kuala Lumpur City Hall (DBKL) for the redevelopment of the council’s flats in Cheras.

In a filing with Bursa Malaysia today, S P Setia said the agreement was signed to outline the overall planning, design, construction, completion and commissioning of the project, called Quality Sustainable People Housing (QSPH) development.

The deal involves 138.25 acres of DBKL land in Cheras.

Under the agreement, Retro Highland will carry out the QSPH development in four phases comprising the construction and completion of 5,650 units of three-bedroom units measuring about 850 square feet each, with amenities, on about 60.45 acres of the DBKL land.

In return, Retro Highland will be awarded about 77.8 acres of leasehold land in Cheras — 25.55 acres of which it will acquire — for a mixed development project, which has estimated gross development value amounting to RM16.3 billion over a 15-year period.

Retro will undertake the QSPH development at its cost, and also bear the expense of building 112 shops/stalls and a market. It will pay DBKL some RM36 million cash and in the mixed development, pay the council a minimum profit guarantee of RM229.42 million.

S P Setia said the master agreement will allow it to continue to strengthen its presence in the Klang Valley, while providing a rare opportunity for the group to further showcase its expertise in residential and commercial developments within the heart of Kuala Lumpur.

S P Setia gained 5 sen or 2.28% to RM2.24 today, giving it a market capitalisation of RM8.87 billion.