Kerjaya Prospek Group Bhd (KPGB) has informed that its indirect subsidiary signed a development agreement with the Railway Assets Corporation (RAC) to acquire and develop a 34.84-acre parcel of railway land in Perai, Penang.
The group said its 55%-owned indirect subsidiary, Rivanis Ventures Sdn Bhd (RVSB), entered into the agreement with RAC to undertake a mixed-use development on the strategically located site over an estimated seven-year period.
The development land is part of a larger parcel in Prai, Seberang Perai Tengah, and is situated within one of Penang mainland’s key growth corridors.
Under the agreement, RVSB will provide RAC with total consideration estimated at RM156.49 million, comprising a cash payment of RM54.1 million and the construction of 338 affordable housing units valued at approximately RM102.39 million.
The project will include the development of at least 338 Rumah Mampu Milik (RMM) Category C3 affordable homes, which will also be used to relocate existing occupants currently residing on the site. The remaining land will be developed into residential and commercial properties.
KPGB said the land titles will be transferred progressively to RVSB based on agreed payment milestones and construction progress, beginning after earthworks and piling works for the affordable housing component have been completed.
The project is being undertaken through RVSB, a joint venture vehicle established between KPGB’s wholly-owned subsidiary Futuprop Sdn Bhd and Aspen Vision Development Sdn Bhd under an agreement signed in November 2024. The latest development agreement formalises the acquisition and development framework after several extensions to the original heads of agreement announced over the past year.
The proposed development is expected to contribute positively to the future earnings of the KPGB Group upon its implementation and eventual completion.
