KUALA LUMPUR, April 20 — OCR Avenue Sdn Bhd (OCRASB), an indirect subsidiary of OCR Group Bhd, has entered into a joint venture (JV) agreement with Magna Ecocity Sdn Bhd (MESB) to fund and undertake the development of a mixed property project in Shah Alam with a gross development value (GDV) of about RM1.5 billion.
OCR said the leasehold land, measuring approximately 20 acres, will be developed into an integrated development comprising e-commerce spaces, commercial offices, retail units as well as serviced apartments, and will be developed in phases.
“At this juncture, the development is still in its early stage of planning. Hence, it is too preliminary to estimate the gross development costs,” it said in a stock exchange filing with Bursa Malaysia.
OCR said the JV would provide an opportunity to strengthen the group’s financial earnings and would be funded by the group’s internal funds or external borrowings.
“OCRASB shall have full absolute discretion in the planning, construction, project management and sale of the entire project and development,” it said.
The JV is not expected to have any effect on the issued share capital and substantial shareholders’ shareholdings of the company as it does not involve the issuance of any new ordinary shares, it said.