KUALA LUMPUR (March 9): Oriental Interest Bhd’s wholly-owned subsidiary OIB Properties (KV) Sdn Bhd (OIBKV) and Kedah State Development Corporation (PKNK) have agreed to jointly develop a 484.11-hectare piece of land in Kuala Muda into a mixed development project comprising commercial and residential buildings with a gross development value (GDV) of RM2.15 billion.

OIBKV and PKNK had entered into an agreement on March 8, 2023 to undertake the joint development, Oriental said in a filing with Bursa Malaysia on Thursday.

Based on the agreement, PKNK, which is the landowner, is entitled to RM326 million or 16% of the GDV, whichever is higher, while OIBKV as the developer will settle the cost of the land totalling RM240 million in full by the 10th year from the date of the agreement.

Oriental said the development is in line with the group’s strategic planning to leverage its strengths in property development and construction to team up with the landowner for successful execution of the contemplated project.

“Barring any unforeseen circumstances and subject to the fulfilment of all conditions precedent as set out in agreement, the board expects the development to be completed by 2033,” it added.