Gagasan Nadi partners Kwasa Land to develop affordable houses in Kwasa Damansara

KUALA LUMPUR (Jan 18): Builder Gagasan Nadi Cergas Bhd has bagged a contract from Kwasa Land Sdn Bhd, a wholly owned subsidiary of the Employees Provident Fund, to jointly develop affordable houses on a parcel of land in the township of Kwasa Damansara, Selangor at an estimated construction cost of RM750 million.

Spanning 34.86 acres, the proposed development will feature 4,183 units of affordable housing with an estimated gross development value (GDV) of RM1 billion.

In a filing with Bursa Malaysia on Thursday, Gagasan Nadi said it had on Wednesday (Jan 17) accepted the letter of award (LOA) from Kwasa Land for the proposed development.

"In consideration of the development rights, Gagasan Nadi will pay Kwasa Land RM35.6 million for the land," it added.

Gagasan Nadi expects the proposed development to contribute positively to its future earnings and net assets.

"A development rights agreement will be entered into between Gagasan Nadi and Kwasa Land in due course. However, until the development rights agreement is executed, the LOA will be valid, binding and effective from the date of acceptance of the LOA. Salient terms will be announced upon execution of the development rights agreement," it said.

Kwasa Land will be the master developer of this project. The LOA will be Gagasan Nadi’s second undertaking with Kwasa Land, after breaking ground on the construction of 1,669 affordable housing units in Plot R4-1 of Kwasa Damansara last year.

In a separate statement, Gagasan Nadi group managing director Wan Azman Wan Kamal said that with the latest project in hand, its ongoing property development projects are worth RM3.6 billion in GDV.

Altogether, Gagasan Nadi is slated to deliver up to 14,000 affordable housing units in Greater Kuala Lumpur over the next eight years. The group’s other affordable housing projects include the Idaman Bukit Jelutong affordable housing project, which is ongoing.

At noon market break on Thursday, Gagasan Nadi shares ended down one sen or 3.45% at 28 sen, giving it a market capitalisation of RM210.84 million. A total of 282,500 shares were traded. The stock has fallen 9.7% over the past one year and 3.5% so far this year.