KUALA LUMPUR: Eastern & Oriental Bhd (E&O) and Japan’s Mitsui Fudosan Co Ltd have entered into a joint venture agreement to develop luxury residences in Damansara Heights.
The joint venture will be undertaken between KCB Holdings Sdn Bhd (KCBH), an indirect wholly owned subsidiary of E&O and Mitsui Fudosan (Asia) Malaysia Sdn Bhd (MFAM), an indirect wholly owned subsidiary of Mitsui Fudosan, via a new joint venture company. The new joint venture company will be 51% held by KCBH while MFAM will hold the remaining 49%.
Upon incorporation, a sales & purchase agreement will be executed between the new joint venture company as purchaser with Ambangan Puri Sdn Bhd (a wholly owned indirect subsidiary of E&O) to acquire 14 plots of freehold land located along Jalan Teruntung, Damansara Heights measuring 15,962.2 square metres for RM88.33 million.
E&O managing director Kok Tuck Cheong said it is honoured to partner Mitsui Fudosan, Japan’s renowned and reputable property developer. The partnership, its third joint venture with Mitsui Fudosan, is an extension of its earlier collaborations on The Mews & Conlay, two noteworthy luxury apartments in Kuala Lumpur City Centre.
“This joint venture comes at an opportune time as there is ongoing demand for exquisitely designed properties in the most prime locations and the prestige of the Damansara Heights district is what all other residential neighborhoods aspire to become. We experienced excellent take-up rate for our earlier projects in this location, namely Seventy Damansara and Idamansara. Riding on our past experiences, we believe that we can bring along further improvements to this project and repeat our earlier success in this niche market and prime location”, said Kok in a statement.
The development land enjoys a strategic address within the highly sought after Damansara Heights location and is slated to be developed into three-storey villas/condominiums totalling 54 units with a gross development value of RM348 million. The development is expected to be launched in the second half of 2020 and will contribute positively to the earnings of E&O from 2021 onwards.
The first milestone in E&O’s relationship with Mitsui Fudosan was a marketing collaboration agreement with Mitsui Fudosan Realty Co Ltd signed in 2011 to market E&O properties to high net worth clientele of Mitsui Fudosan in Japan. In 2013, both companies signed an agreement to jointly develop The Mews serviced apartments in Jalan Yap Kwan Seng and in 2015, another agreement was signed to jointly develop Conlay serviced apartments located on Jalan Conlay.
source https://www.thesundaily.my/business/eo-japan-s-mitsui-fudosan-to-develop-luxury-residences-in-damansara-heights-EM1842161
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