KUALA LUMPUR: Permaju Industries has teamed up with OCR Group Bhd to develop a residential and commercial project with an estimated gross development value (GDV) of RM1 billion in Kota Kinabalu.

Permaju said its 70%-owned subsidiary Hardie Development Sdn Bhd had inked a memorandum of understanding with OCR’s wholly-owned unit O&C Construction Sdn Bhd for the 44.28ha Princess Heights development in the Menggatal district.

The project comprises shops, shop-offices, terrace houses, town houses and a four-storey hypermarket. It is also earmarked for the future development of an e-commerce and lifestyle hub, said Permaju in a filing with Bursa Malaysia,

“Upon completing the phase 1E of the project — the four-storey hypermarket — it will be leased to Mydin Mohamed Holdings Bhd for 20 years for the establishment and operation of its hypermarket and retail business,” Permaju added in a separate statement.

The group said the total collectable rental is estimated at RM433 million. Permaju said the parties will enter into a definite agreement to set forth their scope of joint venture, upon performing their respective due diligence. It added that the profit-sharing concerning the project will be on a 50:50 basis.