Eastern & Oriental Bhd (E&O) and Mitsui Fudosan Co Ltd have inked a joint-venture (JV) agreement to develop luxury residences with a gross development value of RM348 million in Damansara Heights.
In a bourse filing today, lifestyle property developer E&O said the JV will be undertaken between its indirect wholly-owned subsidiary KCB Holdings Sdn Bhd (KCBH) and Mitsui Fudosan’s indirect wholly-owned subsidiary Mitsui Fudosan (Asia) Malaysia Sdn Bhd (MFAM) via a new JV.
It said the new JV will be 51% held by KCBH while MFAM will hold the remaining 49%.
E&O said the new JV will acquire 14 plots of freehold land located in Damansara Heights for RM88.33 million from Ambangan Puri Sdn Bhd.
E&O managing director Kok Tuck Cheong said the JV with Mitsui Fudosan was an extension of its collaborations on The Mews and The Conlay — two luxury apartments in Kuala Lumpur City Centre.
“Our continuous collaboration represents a strategic partnership with an organisation that shares our vision and values of creating iconic communities of enduring value.
“This joint venture comes at an opportune time as there is ongoing demand for exquisitely designed properties in the most prime locations and the prestige of the Damansara Heights district is what all other residential neighbourhoods aspire to become,” said Kok.
In 2013, both companies signed an agreement to jointly develop The Mews serviced apartments in Jalan Yap Kwan Seng. In 2015, another agreement was signed to jointly develop The Conlay serviced apartments located on Jalan Conlay.
Meanwhile, MFAM managing director Takehito Fukui said the E&O-Mitsui Fudosan partnership, which began in 2011, had progressed well and resulted in a track record of successful developments such as The Mews and The Conlay.
“Today, we are ready and very happy to progress to the next level,” said Fukui.
E&O said the Damansara Heights development is expected to be launched in the second half of 2020 and will contribute positively to its earnings from 2021 onwards.
At the midday break today, E&O shares fell 1.58% or 1 sen to 62.5 sen, for a market capitalisation of RM910.59 million.
Source from: Edge Prop
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