KUALA LUMPUR: Kedah State Development Corporation (PKNK) and Oriental Interest Bhd’s wholly-owned subsidiary, OIB Properties (KV) Sdn Bhd (OIBKV), have decided to work together to develop a 484.11-hectare plot of land in Kuala Muda into a mixed development project with a gross development value (GDV) of RM2.15 billion.
OIBKV and PKNK signed a contract on March 8, 2023, to carry out the joint development, according to Oriental, which reported this in a filing with Bursa Malaysia today.
According to the agreement, the developer, OIBKV, shall pay the land cost of RM240 million in full by the tenth year following the date of the agreement, and the landowner, PKNK, is entitled to receive RM326 million or 16% of the GDV, whichever is larger.
According to Oriental, the development is in accordance with the group’s strategic planning to use its expertise in construction and real estate development to work with the landowner for the successful completion of the proposed project.
The statement said, “The board expects the development to be completed by 2033, barring any unforeseen circumstances and subject to the fulfilment of all conditions precedent as set down in agreement. The Bernama
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