OCR Group Bhd is acquiring 80 per cent equity interest in Stack Builder Sdn Bhd and 100 per cent in Wonderland Projects Sdn Bhd for a total of RM62.4 million in a bid to expand its property development activities.
The boutique developer will acquire the stakes from its managing director cum substantial shareholder, Billy Ong Kah Hoe, and various other owners of the companies.
As at July 8, 2021, Stack Builder is equally owned by Ong and another individual, Tan Chin Hoong.
Ong also controls 50 per cent of Wonderland, this is based on a filing with Bursa Malaysia.
OCR is buying into Stack Builder as it has a parcel of leasehold land in Bukit Raja, Selangor while Wonderland owns freehold land at Jalan Alor, Kuala Lumpur.
Stack Builder acquired the land in Bukit Raja in December 2018, which was funded via a combination of bank borrowings totaling RM28.5 million and initial advances from Ong and Tan of up to RM13.75 million each, the filing showed.
Upon completion of the equity acquisitions, OCR will become the controlling developer of the two projects giving it immediate access to new developments in strategic locations.
The current plan for the Bukit Raja land is to build 2,892 units of affordable housing under the Rumah Selangorku scheme with 60 retail lots. The gross development value (GDV) for this project is RM750 million.
The project at Jalan Alor on 0.13 hectares (ha) has a GDV of RM105.9 million. It comprises a 10-storey block with 120 units of Small Office Home Office (SOHO), and eight retail lots.
OCR, which is substantially owned by the Ong family said in a filing with Bursa Malaysia yesterday that it will undertake two property projects at the Shah Alam and Jalan Alor lands with a combined GDV of RM855.9 million.
It aims to launch the project in Shah Alam, its largest-ever property development on 10.89ha, in the first quarter of 2022.
Ong said the size of the project with 2,892 houses and retail spaces would showcase OCR's capabilities and increasing prowess in the property development scene.
The whole project is expected to be completed by 2026 in phases.
Ong is confident the project would enjoy a strong take-up as he believes there is room for Shah Alam to grow with its already large population continuing to expand.
He said the properties will be sold at attractive price points, targeting the existing population and newcomers to Shah Alam.
"This single-largest undertaking denotes the huge potential we see in Shah Alam as it has a unique blend of old-school charm and thriving modernity in commercial, financial, and recreational aspects," he said in a release yesterday.
Ong said the Shah Alam and Jalan Alor projects would take OCR's proposed launches in the next two years to RM1.6 billion.
The Jalan Alor project, which is located within a gazetted Transit Planning Zone is slated for completion in 2025.