Signed – RM774m joint DBKK bus terminal deal
Published on: Monday, June 29, 2015
Kuala Lumpur: Ho Hup Construction Co Bhd's 75pc – owned subsidiary Ho Hup (KK) Sdn Bhd (HHVKK) will undertake a mixed development project in Kota Kinabalu, Sabah, with a Gross Development Value (GDV) of RM774mil.The property development and construction firm told Bursa Malaysia that HHVKK would participate in the project after signing an agreement on Friday to buy a 70pc stake in Golden Wave Sdn Bhd for RM30mil. In May 2010 Golden Wave signed an agreement with DBKK Holdings Sdn Bhd, a subsidiary of the Kota Kinabalu City Hall, to construct a bus terminal and car parks in Kota Kinabalu on land vested with DBKK at a cost not exceeding the agreed land value of RM46.92mil. In exchange, it will receive an adjacent piece of commercial leasehold land measuring 4.99 acres.
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The construction of the terminal, which was about 19pc completed as at April 30, is scheduled to be finished in June 2016.As for the land, it has an indicative market value of RM185mil as appraised by Knight Frank Malaysia Sdn Bhd. Golden Wave will develop it over five years into integrated serviced apartments, hotels and other commercial development with a GDV of about RM774mil.Ho Hup said the acquisition would add to its existing land bank of 2.8 acres and 50-acre joint venture development land in Bukit Jalil City with Pioneer Haven Sdn Bhd."The proposed acquisition is in line with the group's strategy to carry out development projects in strategic locations with high development value," it said.
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Ho Hup said its board was confident that the proposed development would enhance the group's future revenue and earnings.Stay up-to-date by following Daily Express’s Telegram channel.
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Property development contributed a significantly higher after-tax profit to Ho Hup than its construction business in the financial year ended Dec 31, 2014, at RM58.07mil versus RM13.46mil.
