Jiankun International Berhad (JKI) plans to construct service apartments and affordable houses worth a total of RM215.1 million on a freehold parcel of land in Semenyih, Selangor.
A joint development agreement (JDA) has been signed between JKI's wholly-owned subsidiary Nagamas Bizworks Sdn Bhd, and the landowner NTL International Sbd Bhd.
The project in Taman Anggerik, Bandar Teknologi Kajang, comprises a 37-story service apartment block with commercial units, affordable houses, facilities, and a seven-storey carpark, according to a statement released by JKI today (Oct 26).
JKI executive director and chief executive officer, Edwin Silvester Das, said Malaysia's lack of reasonably priced housing units was what prompted the company to step in and meet the need.
"The development of affordable housing could be costly, given the rising cost of land ownership. However, joint development collaborations such as the one that JKI embarked with NTL International will help lower the development cost," he said.
He said NTL International would contribute the land for development, and JKI will be in charge of the project's costs and expenses.
He said JKI would also profit from the JDA because it will enable the company to grow its real estate development project without having to increase its landbank.
Das said this strategy will increase JKI's growth prospects as the real estate development sector bounces back in the post-Covid period.
He said this collaborative development benefits both JKI and NTL International while also demonstrating the firm's capability and reputation in the building and real estate development sectors.
"We believe that the proposal of the service apartment with affordable housing units will provide the right mix to meet the rising demand for affordable housing. As the land is about 7.2km from the MRT Kajang Station, we believe that this will also be attractive for the middle-income households in and around Kajang, Cyberjaya and Putrajaya area," he said.
Das anticipates that the development will increase the value of NTL International and JKI.