Crest Builder unit to build RM1.3bil project

KUALA LUMPUR: Crest Builder Holdings Bhd’s 51%-owned subsidiary, Landasan Bayu Sdn Bhd, had received a letter of intent from Lembaga Getah Malaysia (Malaysian Rubber Board) for the mixed property development with an estimated gross development value (GDV) of RM1.33bil.

Landasan Bayu is a 51:49 joint venture between Crest Builder Sdn Bhd and Tindakan Juara Sdn Bhd. The plot of land which will be developed is located at the intersection of Jalan Ampang and Jalan Jelatek in Kuala Lumpur and has an area measurement of about 19,247 sq m.

“The estimated gross floor area of the development is expected to be about 1.65 million sq ft,” it said.

The company told Bursa Malaysia that the mixed development comprised three 28-storey apartment and soho (small office home office) towers, a 33-storey corporate tower and a six-storey retail mall, and would be complete with the infrastructure, common facilities and common services.

“The development is expected to commence physical works in 2013, and is expected to be completed in 2018,” it said.

Lembaga Getah was entitled to RM299.85mil, in a mixture of both cash as well as completed property entitlements, it added.

The proposed development will not have any significant effect on the earnings or net assets of Crest Builder for the financial year ending Dec 31, 2012, and the share capital of the company. However, it was expected to contribute positively to its future earnings, it said.

The company also said the risk factors for the proposed joint-venture development would include but not limited to those associated with changes in the economic and regulatory conditions, such as changes to cost of funding and taxes.

By The Star