Kerjaya Prospek Property to jointly develop Batu Kawan land for proposed mixed development

PETALING JAYA: Kerjaya Prospek Property Bhd (KPPB) has entered into a joint venture agreement with Aspen Vision City Sdn Bhd (AVC) to jointly develop a piece of freehold land in Aspen Vision City, Batu Kawan, Penang.

In a filing with Bursa Malaysia, KPPB said the development will be done via a special purpose vehicle (SPV) wherein its wholly-owned subsidiary, Kerjaya Property JV Sdn Bhd and AVC will hold 70% and 30% of shares in the SPV respectively.

“The joint venture is undertaken for the purpose of jointly developing the land into a mixed development comprising hotel, residences, serviced apartments, retail units and/ or office blocks in accordance with development approvals.

“The expected gross development value and development costs are subject to various factors including amongst others, timing, economic conditions, market demand, the actual number of units to be developed and pricing of units. These and many other related factors cannot be determined at this juncture,” it said.

KPPB said the net book value of the land is RM25.1mil, based on the audited financial statements of AVC for the financial year ended June 30, 2023.

“The Land is strategically located in Batu Kawan and is a well-sought-after location by investors.”

Additionally, the group said the joint venture agreement will enable KPPB to focus on its core business of property development.

“The proposed development will add on to KPPB’s future project pipeline and income streams.”