KUALA LUMPUR (Aug 22): Fajarbaru Builder Group Bhd has formed a joint venture (JV) with hostel management company Care Dynamic Sdn Bhd (CDSB) for a labour quarters project in Seremban.

In a bourse filing on Monday (Aug 21), Fajarbaru said the group’s wholly-owned subsidiary Fajarbaru Land (M) Sdn Bhd (FLM) entered into a JV agreement with CDSB to jointly undertake the development.

FLM owns a 60% stake in the JV, Fajarbaru Dynamic Development Sdn Bhd (FDD), while CDSB owns the remaining 40%.

Fajarbaru said the project has an estimated gross development value (GDV) of RM172.4 million and comprises the development and construction of 672 units of centralised labour quarters on a 10.9-acre plot of land in Sungai Gadut, Seremban.

The plot of land is owned by Sungei Gadut Development Sdn Bhd, which granted CDSB power of attorney over the land.

The project’s construction is to span a three-year period, commencing once building plan approval is obtained.

Under the JV, FLM is to undertake the construction and development of the project, while CDSB is responsible for land matters, as well as sales and marketing of the project.

According to Fajarbaru, parties also agreed that FDD and/or FLM are not obligated to commence construction of the project unless and until CDSB secures the sale of 50% of the project.