TSR pays RM58.9m for Kwasa Land project

This article first appeared in The Edge Financial Daily, on April 11, 2018.
TSR pays RM58.9m for Kwasa Land project
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KUALA LUMPUR: TSR Capital Bhd will pay Kwasa Land Sdn Bhd, the master developer of the Kwasa Damansara township in Selangor, RM58.94 million for the development rights and revenue sharing in a proposed residential development, Plot R3-3 at the township.

The development, with a gross development value of RM295 million, will feature 260 residential units including link, cluster, exclusive and town villas as well as condominiums. It is expected to be completed within six years in 2024.

In a filing with Bursa Malaysia yesterday, TSR said its wholly-owned subsidiary TSR Development Sdn Bhd had entered into a development rights agreement with Kwasa Development (3) Sdn Bhd (KD3) to undertake the development. KD3 is a wholly-owned subsidiary of Kwasa Land, which in turn is a wholly-owned unit of the Employees Provident Fund.

In consideration of the development rights, TSR will pay KD3 RM39.76 million and a sum equivalent to 6.5% of the gross sales value.

In a separate statement, Kwasa Land managing director Datuk Mohd Lotfy Mohd Noh said TSR was selected from a total of 14 tier-three bumiputera developers who had bid to undertake the development of the plot following a request for proposal outlined by a stringent financial, non-financial and technical evaluation process.

The 6.52-acre (2.64ha) Plot R3-3 has a green connectivity to one of the largest parks, measuring 42 acres, in Kwasa Damansara, encompassing a 13.6-acre lake.

When fully completed, the Kwasa Damansara township is projected to have a population of about 250,000 residential households and commercial workforce.

TSR shares closed down 0.5 sen or 1.06% at 46.5 sen yesterday, with a market capitalisation of RM81.12 million.