Central Global Berhad (“CGB”) announced that Central Global Development (“CGD”), a wholly-owned sub-subsidiary of the Group, had entered into a Collaboration Agreement with Menteri Besar Kedah Incorporated’s wholly-owned subsidiary Permodalan Kedah Berhad (“PKB”) for a mixed development project with a gross development value of RM42.3 million in Mukim Bukit Raya, Pendang, Kedah.
CGD is primarily involved the investment holding and buying, selling, renting and operating of self-owned or leased real estate of residential buildings and land. Meanwhile, PKB is primarily involved in the development of the State of Kedah in various fields including real estate development, construction, hospitality and mining.
The project, spanning 11.7 acres of leasehold land, will see CGD undertake the responsibility of developing a mixed development comprising 20 units of 2-storey shop/office lots, 46 units of 2-storey terrace houses, and 53 units of 1-storey terrace houses.
The project is expected to commence within one year from the execution date of the agreement and is expected to be completed within five years.
“The demand for residential properties in Kedah has continued to be encouraging and there is no better way for us to employ our construction expertise than to fulfil this demand,” said CGB Executive Director Jacky Lee.
Currently, CGB is active in the residential property construction sub-sector in Penang through its wholly-owned subsidiary Proventus Bina. Most notably, the group’s construction projects include the Beacon Executive Suites and the Eco Horizon.
Simultaneously, the group is also making significant headway in the infrastructure construction sub-sector primarily in Sabah through its 70%-owned subsidiary RYRT International Sdn. Bhd. Its notable projects include the Projek Menaiktaraf Sistem Bekalan Air di Lahad Datu Fasa 1, Projek Pembaikan Cerun di Sri Putatan, Lahad Datu and Projek Jalan Semawang ke Tanjung Kuala Gum Gum.
To date, the group’s construction order book is recorded at RM318.8 million. Barring any unforeseen circumstances, the project is expected to contribute positively to the Group’s financial performance in the long run.
