KUALA LUMPUR: Seacera Group Bhd is partnering with OCR Group Bhd to develop 501.5 acres of land at Semenyih that has RM10 billion in gross development value (GDV).
In its filing to the stock exchange today, Seacera said as part of the company’s continuous efforts to rehabilitate its financial condition, the board has decided to monetise Seacera's freehold land, measuring 501.5 acres.
The plan will entail the development of landed residential homes, landed commercial shop units, high-rise strata developments, hospitals, schools, hotels and malls, among other components.
Seacera's unit Duta Skyline Sdn Bhd will be entitled to 22 per cent of the GDV for all low-rise landed developments and 18 per cent of GDV for all high-rise strata development.
The amount will be satisfied by OCR Group's unit Amazing Symphony Sdn Bhd via RM10 million in cash, of which RM1 million is payable upon execution of the joint venture agreement, followed by a further RM2 million to be paid within three months of the execution of the agreement.
Finally, the remaining RM7 million will be paid off at a rate of RM1 million per year on the anniversary date of the agreement.
Duta Skyline's remaining entitlement will be paid on a quarterly basis from proceeds of sales received by Amazing Symphony in accordance with its proportion of entitlement.
Seacera said its future lies with its property development and construction segment following board’s decision to permanently shut down its only tiles manufacturing plant in Selayang although the trading business of tiles and building materials will continue.
The deal was announced amid Seacera's boardroom tussle with its largest shareholder Datuk William Tan Wei Lian.