KUALA LUMPUR, November 24— O&C Resources Bhd’s unit, Grand Superland Sdn Bhd (GSSB) has signed a joint venture agreement with Arra Inovasi Sdn Bhd to develop a housing project in Bangi, Selangor.
In a filing to Bursa Malaysia today, GSSB said the gross development value and gross development cost of the project were estimated at RM90 million and RM72 million, respectively.
“The estimated profit before tax attributable to GSSB is approximately RM8.99 million over the construction period,” it said.
It said all costs pertaining to the development works, including planning, implementation, construction and completion of all works, in accordance with the approved plans on the 3.52-hectare land, would be solely borne by GSSB.
“The joint venture is in line with our company’s strategy to grow and diversify our business operations to turn profitable with sustainable growth, as well as to balance our income stream from non-traditional sources and to lessen any future negative industry impact on a traditional business industry.
“The outlook for the property development industry is expected to have a direct positive impact on the joint venture and the board is of the view that the prospects of the group are expected to be positive in the future,” it said.