Varia Bhd has entered into a collaboration agreement with Seri Alam Properties Sdn Bhd to jointly develop a medium-cost residential project with an estimated gross development value (GDV) of approximately RM250 million in Bandar Seri Alam, Johor Bahru.
In a filing with Bursa Malaysia, Varia said its indirect wholly-owned subsidiary, Varia Southrise Sdn Bhd, signed the agreement on June 9 with Seri Alam Properties, the landowner, to develop a freehold parcel measuring about 43,810 square metres in Mukim Plentong.
The proposed project will comprise 645 medium-cost stratified apartment units across two residential towers of 20 and 21 storeys, together with ancillary facilities including a Tenaga Nasional Bhd substation and community amenities.
The development site is located within Bandar Seri Alam, a mature township in Johor’s Pasir Gudang–Masai growth corridor, an area widely known as the “City of Knowledge” due to its concentration of higher education institutions, international schools and specialised learning centres.
Under the collaboration structure, Seri Alam Properties will retain legal ownership of the land while granting Varia Southrise exclusive rights to undertake and manage the development.
The parties will share the project’s profit before tax equally, with each entitled to 50% of the development profits.
The land contribution has been valued at RM17 million, while the project will be funded primarily through financing facilities to be secured by the developer, supplemented by internally generated funds and future sales proceeds where necessary.
The group believes the project will allow both parties to leverage their respective strengths and resources to unlock the development potential of the site while delivering quality affordable housing to meet growing demand in the Johor market.
