DAMANSARA REALTY EYEING FUTURE DEVELOPMENT OPPORTUNITIES
AFTER ENDING PRECINCT 5 PPA1M PROJECT
KUALA LUMPUR, 26 February 2019: Damansara Realty Berhad (DBhd) has announced the termination of the Development Agreement (DA) with Perbadanan Putrajaya (PJC) for affordable civil servant housing project (PPA1M) and related commercial components in Putrajaya.
In a filing with Bursa Malaysia today, DBhd said PJC had decided to terminate the DA with its subsidiary Damansara Realty (Johor) Sdn Bhd (DRJ) on the basis of national and public interests, in line with the government’s aspiration to unify the development of affordable homes under Ministry of Housing and Local Government (KPKT).
“DBhd respects this decision by PJC and remains optimistic in our plans regarding any development or collaboration with both government and private entities. We support the Government’s direction in the importance of promoting strategic operational cohesion at the national level,” said DBhd Group Managing Director, Ts. Brian Iskandar Zulkarim.
“Other than the costs incurred since we started the project, which is claimable, the decision would not have any significant impact on the group’s earnings or net assets per share,” added Ts. Brian.
The Federal Government recently formed a National Affordable Housing Council, grouping five public housing agencies together, including PPA1M which oversees affordable housing for civil servants.
Meanwhile, DBhd is turning its focus on specialised development projects such as hospital planning, development and construction, combining the strategic strengths of its property development and project management and consultancy (PMC) segments.
“We’ve achieved a second straight year of profit and ensured our core businesses continue to yield stable recurring income,” said Ts. Brian.
DBhd is continuing to streamline its stable of businesses as it focuses on expanding in higher margin and higher growth businesses.
*Ts. stands for the title of ‘Certified Professional Technologist’ awarded by the Malaysia Board of Technologists (MBOT).