Gadang bags maiden 1Malaysia housing deal

By BUSINESS TIMES

GADANG Holdings Bhd, has won its maiden affordable housing development under the 1Malaysia Housing Programme (PR1MA), a government initiative designed to help middle-income earners own properties.

Gadang did not disclose the value of the contract. In a statement to Bursa Malaysia, Gadang said further details will be released upon the company signing the agreement with Cyberview Sdn Bhd.

Business Times understands that the contract is valued just above RM1 billion, and that it has the potential to generate some RM100 million in revenue annually for a period up to nine years for the public-listed company.

Gadang, however, did say that it has accepted the letter of acceptance from Cyberview to jointly develop the latter’s K-Workers Housing Project in Cyberjaya.

Cyberview, formed in 1996, is a government-owned company and the landowner of Cyberjaya.

The firm has been mandated to spearhead the development in Cyberjaya.

PR1MA was set up for Malay-sians earning not more than RM6,000 monthly, be they in the government or private sector or selfemployed.

Under the scheme, loans of up to 105 per cent could be provided for house buyers from a selected list of financial institutions.

PR1MA houses normally consist of three-room/two bathroom units that cost anywhere between RM150,000 and RM300,000, depending on the location and size.

Earlier in April, Gadang, controlled by Tan Sri Kok Onn, inked an agreement with Cyberview to jointly undertake the project at Block 20, Cyberjaya, using a special purpose vehicle.

In a filing to Bursa Malaysia yesterday, Gadang said the project will be based on terms and conditions therein and other terms and conditions to be mutually agreed on by both parties in the agreement.

The K-Workers housing project comprises 2,500 homes and 50 commercial units on a 44.23ha site.

Phase 1 of the project, with a gross development value of RM140.9 million and earmarked for launch in early next year, will offer 325 apartment units and 125 double-storey link houses.

The proposed selling price for the link houses ranges from RM500,000 to RM550,000 per unit.

As for the apartments, with built-up space ranging from 850 sq ft to 1,000 sq ft, they are priced at between RM220,000 and RM250, 000 each.

– Malaysia Property News

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