Sand Nisko Capital Bhd will undertake a residential project in Alor Gajah, Melaka with a landowner and explore further possibilities of working with other landowners in the surrounding area with the ultimate aim of establishing a mini township, with an estimated gross development value (GDV) of RM50 million.
Its property development subsidiary, Len Cheong Resources Sdn Bhd (LCR) has entered into a joint venture agreement (JVA) with one landowner, Professor Datuk Dr. Raduan Che Rose to develop the residential project on 5.63 acres in Durian Tunggal.
Sand Nisko managing director Emily Sow Mei Chet said the agreement represents a strategic opportunity for the group to increase its land bank in Melaka, thereby ensuring growth and sustainability of revenue and profitability.
LCR's role in the development involves the application for approvals from the appropriate authorities, as well as the construction works and completion of building units, the group said in a stock exchange filing.
It further said that Raduan shall within the time stipulated in the JVA deliver vacant possession of the land to LCR, and in return, he will get 12 per cent of the total number of units developed in the project.
Sand Nisko said it intends to undertake a residential development in Durian Tunggal as the land is in a mature location and ready for development.
The area is located less than two kilometres from Universiti Teknikal Malaysia Melaka and the Ayer Keroh Toll Plaza, the gateway to Melaka.
Sand Nisko said the property market in Melaka is also anticipated to recover gradually in 2021 with the allocation of funds from the state government to spur economic activities within the state.
"The group is of the view that Malacca Customary Land (MCL) status of the said land will not have a significant impact on the potential sales of the group's planned development as Malays form the majority demographic of the area. Since Melaka already imposes 60 per cent Bumiputra quota on all property developments, the group is thus confident to achieve the 100 per cent condition," it said.
Moving forward, Sand Nisko intends to seek further opportunities in the property development business.