KUALA LUMPUR (Nov 22): Axteria Group Bhd’s wholly owned subsidiary Axteria Development Sdn Bhd (ADSB) has entered into joint-venture agreements to undertake mixed development projects with gross development value (GDV) totalling RM590 million.

ADSB’s first joint-venture agreement is with Alpha Astral Properties Sdn Bhd and involves a mixed development on 8.30 ha in the Mukim of Tebrau, Johor Bahru.

“The parties have plans to develop a portion of the Tebrau development land measuring 2.08 ha or Plot 1 comprising two blocks of small office home office (SoHo) suites totalling 792 units, a four-storey corporate office, a four-storey spa, a boutique hotel, office and co-working space, among others,” a filing with Bursa Malaysia said today.

Based on preliminary assessment, Plot 1 is anticipated to have a GDV of RM413.2 million with a gross development cost (GDC) of RM353.5 million.

Barring any unforeseen circumstances, work is expected to commence in the second quarter of 2024 and the development completed in the second quarter of 2028.

The second joint venture agreement is with Sumber Alpha Sdn Bhd to undertake a 0.80 ha freehold mixed development in Plentong mukim, Johor Bahru comprising 474 SoHo units and 35 shoplot units. The project is anticipated to have a GDV of RM176.6 million and a GDC of RM149.6 million.

Work is expected to commence in the fourth quarter of 2023 and be completed in the fourth quarter of 2027 although the project is yet to receive local authorities approval, the filing said.

Source: EdgeProp, 23 November 2022.