Taghill proposes RM191.7m apartment project in Kota Bharu under JV

PETALING JAYA (Sept 28): Taghill Holdings Bhd has entered into a joint venture (JV) to develop 639 apartments on a 7.94-acre site in Kota Bharu, Kelantan. The proposed project has an estimated gross development value (GDV) of RM191.7 million.

Its wholly owned subsidiary, Taghill Aman Sdn Bhd, signed the agreement with Mohamed Hasbullah Che Hussin, the land’s registered proprietor, and SBJ Binajaya Development Sdn Bhd, its beneficial owner, according to a Bursa Malaysia filing on Friday (Sept 25).

Taghill Aman intends to seek approval for two apartment blocks comprising 333 and 306 units respectively. The proposed apartments would have built-up areas of about 761 sq ft each.

The freehold Malay Reservation land is located at Tempat Kg Chekok in Mukim Chekok. An earlier planning permission for five apartment blocks comprising 505 units has lapsed, and the new proposal requires fresh approvals.

Subject to the agreement’s conditions precedent, the landowners are entitled to RM24 million. The first RM13.6 million payment is to be applied towards redeeming and discharging an existing financing facility secured against the land.

Independent valuer Khong & Jaafar Sdn Bhd assessed the land’s market value at RM24 million on the assumption that approval for the proposed development is obtained. It assessed the land at RM19 million in its existing condition.

Taghill Aman will undertake the project without forming a separate JV company. Taghill estimated the gross development cost, excluding developer’s profit, at RM123.46 million. It expects to fund the landowners’ entitlement and development costs through internally generated funds and/or external financing.

The group expects the project to commence by the second quarter of 2027 and be completed by the second quarter of 2031, subject to the required approvals and fulfilment of the agreement’s conditions precedent.

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