KUALA LUMPUR: Gagasan Nadi Cergas Bhd's unit, Nadi Emery (KKD2) Sdn Bhd, has secured development rights for a RM1 billion gross development value affordable housing project in Kwasa Damansara, from Employees Provident Fund's unit Kwasa Land Sdn Bhd.
The development rights agreement was signed with Kwasa Land Sdn Bhd's subsidiary Kwasa Development (15) Sdn Bhd (KD15) to undertake these housing projects within the Kwasa Damansara township.
The DRA requires Nadi Emery to pay KD15 a total of RM35.6 million for the development rights to design and construct 4,183 units of affordable housing on a 14 hectares land.
Kwasa Land will act as the master developer for this project.
Gagasan Nadi Cergas, in a statement, said this marks its second collaboration with Kwasa Land, following the groundbreaking of another project of 1,669 affordable housing units last year.
The entire development wil be funded through a combination of internally generated funds and bank borrowings.
Its group managing director Datuk Sr Wan Azman Wan Kamal said the agreement signed marks the continuation of partnership with Kwasa Land, as they work together to ensure an ample supply of affordable homes in Malaysia, particularly Selangor, where the population continues to grow rapidly in tandem with the state's robust economy.
"Boosted by its strategic location and proximity to the two MRT stations within Kwasa Damansara township and the Damansara–Shah Alam Elevated Expressway (DASH), the project is bound to be well-received by homebuyers, much like the enthusiastic response to our previous launch of Idaman Kwasa Damansara."
"Furthermore, the market value range of these homes is affordable yet earnings-accretive, supporting the future growth of our rapidly expanding property development segment," he said.
Currently, the group is also developing about 6,000 Rumah Idaman affordable housing units in both Bukit Jelutong and Kwasa Damansara, as well as over 1,000 Idaman Amani affordable housing units in the City of Elmina.
The group plans to deliver more than 11,000 affordable homes over the next eight years, further strengtheniing its position as a leading property developer in the affordable housing market.
Meanwhile, the group's construction segment is resilient with a RM462 million order book.
Gagasan Nadi Cergas' share price closed unchanged at 29.5 sen, giving it a market capitalisation of RM222 million.