MB World in JV to develop RM176m Plentong project

PETALING JAYA: MB World Group Bhd’s unit MB Max Sdn Bhd will be partnering landowner Shiya Sdn Bhd for a RM176 million gross development value in Plentong, Johor Baru.
A total of 406 apartment unit will be built on 6.261 acres land.
MB World said in a filing with the stock exchange that the two parties have entered into a development rights agreement (DRA) for the construction and the sale of the apartment units.
The group noted that the DRA allows it to develop on the land without outright purchasing the land which will require significant cash outlay.
“This is consistent and in line with the group’s strategic direction to focus on property development activities to sustain its growth through acquisitions, joint ventures, or other arrangements with land owners,” it said.
The DRA is expected to contribute positively to the future earnings of the group and any profit attributable to it would be realised in stages over the tenure of the project based on the progress of the project.