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OCR Group Bhd is set to launch its largest-ever property development in Shah Alam, Selangor, which will have a gross development value (GDV) of at least RM750 million.

The project will cover 26.9 acres (10.89ha) and will consist of 2,892 affordable home units along with retail spaces established in phases. 

The property developer noted that the project will commence in the first quarter of 2022 (1Q22) with completion scheduled by 2026. 

The project is not only easily accessible through the Guthrie Corridor Expressway, the New Klang Valley Expressway and the soon-to-be Damansara-Shah Alam Elevated Expressway, it is also located in the capital of Selangor where its population is rapidly growing to over 650,000. 

OCR MD Billy Ong Kah Hoe noted that the project would showcase OCR’s expanded capabilities and increasing role in the domestic property development scene. 

“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. 

“There is still much room for Shah Alam to grow with its already-large population continuing to expand, hence we are confident this project would enjoy a strong take-up,” he said in a release yesterday. 

OCR’s Shah Alam project is under the group’s Essential Living series and will be sold at an attractive price to locals seeking to own a property. 

The project aims to cater to two groups — Shah Alam’s existing population and those who will be moving to the city. 

“The development will be a great choice for the working class as it is merely 25 minutes away from the city centre,” Ong added. 

The project is also simultaneous with OCR’s Urban Living project in Jalan Alor, Kuala Lumpur (KL), which has a GDV of RM105.9 million and is expected to start next year as well. 

It measures 0.13ha and comprises a 10-storey Small Office Home Office (SOHO) development with 120 units of SOHO and eight retail lots. 

OCR’s Jalan Alor project is slated for completion in 2025 while its site is within a gazetted Transit Planning Zone. 

The project would have similar benefits with the Transit Oriented Development as well as the ability to command a higher plot ratio and reduced carpark requirements which is in line with the greater public transport accessibility. 

Ong expects these two new projects would take OCR’s proposed launches in the next two years to RM1.6 billion. 

In an exchange filing yesterday, OCR said it plans to acquire 80% equity interest in Stack Builder and 100% in Wonderland Projects from Ong and various other owners. 

The acquisitions are priced at RM62.4 million and will be fully paid through an issuance of 328.5 million new OCR shares with no direct cash payout by the group. 

Stack Builder owns the Shah Alam land and Wonderland Projects owns the property in Jalan Alor, with OCR becoming the controlling developer once the equity acquisitions are done. 

The Stack Builder purchase consideration could be between RM5.66 million and RM3.59 million depending on the conditions and development order for the mixed-development project known as Rumah Selangorku to be taken by Stack Builder. 

The settlement agreement between OCR, the Stack Builder Vendors and Stack Builder for the proposed settlement of advances amounting to RM41.59 million will be satisfied by issuance of new OCR shares. 

The SSA for the proposed acquisition of two million shares in Wonderland is tagged at a purchase consideration of RM5.32 million, to be satisfied via issuance of OCR shares. 

The settlement agreement between OCR, Wonderland vendors and Wonderland amounts to RM9.85 million, to be settled via issuance of settlement shares. 

The proposed acquisition of these two parties is subject to the approval of relevant authorities and shareholders at an upcoming Extraordinary General Meeting in the 4Q21. 

OCR shares closed half a sen lower at 16.5 sen yesterday upon the release of the exchange filing. 

 

Source: The Malaysian Reserve /  AZALEA AZUAR, 3 August 2021.

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