PKNS, Hextar To Develop RM3.8 Billion Township In Siera Alam
SHAH ALAM, Aug 14 (Bernama) -- Hextar Global Bhd through its 70 per cent indirectly owned subsidiary Hextar Landmark Sdn Bhd has partnered with Perbadanan Kemajuan Negeri Selangor (PKNS) to develop an integrated mixed-use development with an estimated gross development value (GDV) of RM3.8 billion in Siera Alam, Shah Alam.
Executive director of the Property Development Division at Hextar Global Datuk Edmund Kong Woon Jin said Hextar Landmark had entered into a joint venture agreement with Kotaputeri Development Sdn Bhd (KDSB), a subsidiary of PKNS, to jointly develop approximately 240.388 acres through the joint venture company Hextar Siera Sdn Bhd.
He said Hextar Landmark will hold a 70 per cent equity stake in Hextar Siera, while the remaining 30 per cent will be held by KDSB.
The project is targeted at middle to upper middle income upgraders seeking better designed homes, greener surroundings, enhanced security and improved lifestyle amenities.
“The development, which marks Hextar's maiden venture into property development, is expected to be rolled out in several phases over an estimated 10 year comprising terrace houses, semi detached villas, villas and commercial components, complemented by selected high rise residential, commercial and lifestyle components,” he said.
He said at the joint venture agreement signing ceremony between KDSB and Hextar Landmark at the Shah Alam Innovation and Technology Centre (SITC) today.
The development will be guided by a “Park First, Home Second” philosophy, with plans focusing on a central park and lake as the social heart of the community, alongside pedestrian-friendly streets and landscaped surroundings.
Meanwhile, Edmund said Hextar Siera has entered into a sale and purchase agreement with PKNS to acquire the development land for RM270 million.
The acquisition will be funded through a combination of bank borrowings and equity, while the purchase consideration is supported by an independent valuation undertaken by Laurelcap Sdn Bhd.
Edmund also said that as the joint venture is expected to contribute more than 25 per cent of the group’s net profit in the future, it will seek shareholders’ approval to diversify its business into property development, construction, property investment and management.
Meanwhile PKNS group chief executive officer Datuk Mahmud Abbas said the partnership allows the value of the land to be optimised to generate long-term returns while supporting Selangor's development agenda through urban regeneration and surrounding growth.
He also emphasised that the strategic cooperation with the Hextar Group is built on mutual empathy, respect and understanding between both organisations in safeguarding the state's interests and driving Selangor's sustainable township development agenda.
He said the selection of development partners was not based solely on business capabilities, but also on their development philosophy and ability to create long-term value for the community.
Mahmud said the approach was in line with the development concept proposed by Hextar for the project, including an emphasis on green areas, parks, lakes and a comfortable environment for the community.
He said PKNS also places emphasis on maintaining long-term relationships with its joint-venture partners to ensure the interests of the state are protected throughout the implementation of the project.
“PKNS holds substantial landbank but lacks the capacity to develop all parcels independently, necessitating strategic partners who bring expertise and aligned development philosophies. Through this collaboration, PKNS can leverage our partner's expertise to maximise land value,” he said.
-- BERNAMA