Johor Bahru/Singapore, 4 October – Singapore Exchange-listed Astaka Holdings Limited said today that its indirect 99.99% owned subsidiary, Astaka Padu Sdn Bhd (APSB) , has entered into a joint venture to develop a 258.48-acre township close to the Pengerang oil and gas hub in Southern Johor, Malaysia. APSB holds a 51% stake in Bukit Pelali Properties Sdn Bhd (BPPSB), with the remaining 49% stake held by Saling Syabas Sdn Bhd (SSSB).
BPPSB was formed to develop the land in Pengerang, Kota Tinggi (“Bukit Pelali Land”). BPPSB and SSSB have entered into a conditional joint development agreement under which SSSB has granted BPPSB the sole and exclusive right to develop the Bukit Pelali Land (the ‘Bukit Pelali Project’) and the absolute right and authority to sell the properties in the Bukit Pelali Project, which will comprise mostly residential units and commercial shop lots.
Astaka, an integrated premium property developer, said the Bukit Pelali Project will represent its second most important project after the iconic One Bukit Senyum (“OBS”) which will be new administrative and commercial hub of Johor Bahru, adjoining Singapore. The Bukit Pelali Project will be the closest sizeable township to Pengerang, one of the region’s largest hubs for oil and gas, petrochemical, oil storage and trading activities.
BPPSB’s 49%-shareholder, SSSB, is an associate of Astaka’s controlling shareholder, Dato’ Daing A. Malek Daing A. Rahaman (Dato’ Daing A. Malek). Dato’ Daing A. Malek has a 95% equity interest in SSSB while the remaining 5% is held by Astaka’s Executive Director and Chief Executive Officer, Dato’ Zamani Bin Kasim The Bukit Pelali Project is in line with the Group’s strategy to reduce business risks associated with a single development project and diversify the Group’s current project development portfolio.
The Bukit Pelali Project is expected to commence in 2017. Dato’ Zamani Bin Kasim, said: “We are confident that the Bukit Pelali Project will lift Astaka’s profile as a leading integrated property developer just as OBS has done. We will focus on a high-quality product which will set a standard for such developments in this region.” Dato’ Daing A. Malek said: “Bukit Pelali is a major second project after OBS which underscores Astaka’s commitment to enhance shareholder value by rapidly securing and executing quality projects with significant potential.
Demand for the project is expected to be strong considering the scope and scale of activities in Pengerang.” The Bukit Pelali Project is subject to compliance with the relevant rules and regulations, and approval by Astaka’s shareholders at an extraordinary general meeting to be convened. The Bukit Pelali Project is Astaka’s second project after its flagship development, OBS, in Johor Bahru. OBS is a mixed development with total gross floor area of 6.3 million square feet and estimated gross development value of RM5.4 billion.
It includes a five-star hotel, branded residences, service apartments, a premium shopping mall, Grade A office tower and the new headquarters of Johor Bahru’s City Council, Menara MBJB. OBS is also home to The Astaka, touted to be Southeast Asia’s tallest residential twin towers and set for completion in end 2017. To date, 71% of The Astaka’s residential units have been sold.