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PETALING JAYA (June 26): Chin Hin Group Property Bhd (CHGP) has entered into a joint development agreement (JDA) to co‑develop a high‑rise residential project in Melawati with an estimated gross development value (GDV) of approximately RM883 million.
In a Bursa filing yesterday, CHGP said its wholly‑owned subsidiary Chin Hin Property (Melawati) Sdn Bhd (CHPMSB) signed the JDA with EC Properties (M) Sdn Bhd (ECPMSB) to jointly undertake and co‑invest in the development and construction of a 1,449‑unit serviced apartment project on two freehold parcels in Bandar Ulu Kelang, Gombak, Selangor.
The land, measuring a combined 27,235 sq m, is currently the site of an abandoned development known as MM Residensi, which is about 20% completed.
Under the agreement, CHPMSB will pay a reimbursement sum of RM80 million to ECPMSB, derived from the latter’s acquisition cost for the land and related expenses.
The amount will be satisfied via a combination of RM32 million in redeemable preference shares (RPS) to be issued by CHPMSB to ECPMSB, and a RM48 million cash component expected to be funded through bank borrowings.
In consideration of the reimbursement sum, CHPMSB will have the exclusive development rights to implement and complete the project, including the right to demolish existing structures, obtain approvals, appoint consultants and contractors, and sell units in the development.
All proceeds from the project are to be received and utilised by CHPMSB, subject to ECPMSB’s reserved and approval rights as set out in the JDA.
CHGP said the project constitutes a new development and is not to be construed as a continuation, revival or assumption of the MM Residensi abandoned project.
The project’s GDV is estimated at RM883 million against a gross development cost (GDC) of RM725 million. It is targeted to be launched in phases, with the first phase targeted for the second quarter of 2027, subject to the timing of obtaining approvals.
Funding is expected to come from a mix of external borrowings and internally generated funds, with the exact mix to be determined later based on the group’s requirements.
CHGP said the JDA is in line with its strategy to expand its property development segment through a new landbank and that, barring any unforeseen circumstances, the project is expected to contribute positively to the group’s earnings in future years.
Based on the group’s audited financial statements as at Dec 31, 2025, the transaction carries a highest percentage ratio of 14.736% under Bursa Malaysia’s Main Market Listing Requirements.
The proposed joint development will not affect CHGP’s issued and paid‑up share capital or its substantial shareholders’ shareholdings. CHGP also said the exercise is not expected to have any material effect on earnings per share, net assets per share or gearing for the financial year ending Dec 31, 2026.
The JDA remains subject to several conditions precedent, including completion of EC Properties’ acquisition of the land from TSA Land Sdn Bhd (receiver appointed, in liquidation), necessary planning and development approvals, any required court orders to restructure and settle prior purchasers’ claims related to the abandoned project, and financing arrangements for CHPMSB.
CHGP expects the proposed joint development to be completed by the third quarter of 2033.
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