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DBE's Unit To Jointly Develop Housing Project In Bota Kanan

Last update: 05/02/2018KUALA LUMPUR, Feb 5 (Bernama) -- D.B.E Gurney Resources Bhd's (DBE) wholly-owned subsidiary, DBE Development Sdn Bhd (DDSB), and Misi Jutari Sdn Bhd (MJSB) will jointly develop a mixed development project worth RM24.5 million in Bota Kanan, Seri Iskandar, Perak.

The project comprises 10 single-storey semi-detached houses, 85 single-store terrace houses, three double-storey shop houses, and 16 single-storey shop houses.

DBE Executive Director Datuk Doh Jee Ming, in a statement, said the proposed development was part of DBE's strategy to diversify into the property development industry from an integrated poultry business.

The company expects strong growth prospects in the residential sector, he said, adding that, "We are optimistic that this project will contribute positively to our bottom line."

Under the proposed development, Doh said DDSB and MJSB would be entitled to 75 per cent and 25 per cent shares, respectively, of the net development profit attributable to the mixed affordable development project.

He said the board planned to undertake a proposed variation of the balance unutilised proceeds raised by the company previously through the issuance of RM50 million redeemable convertible notes worth RM12.56 million.

The proceeds, which was originally earmarked for its existing poultry business, would be reallocated to finance the development related cost of the Bota Kanan project, as well to fund future procurement of new land banks and/or projects, he added.

Moving forward, he said the company intended to venture into the affordable housing market segment.

"We are confident that it will contribute positively to the overall profitability and growth of the enlarged business activities of the company," he added.

-- BERNAMA