MAIN Market-listed property developer Chin Hin Group Property Bhd (CHGP) has sealed a joint development agreement (JDA) with EC Properties (M) Sdn Bhd to undertake the development of a long-stalled site in Bandar Ulu Kelang, Gombak, Selangor.
Spanning two parcels of freehold land measuring 27,235 sq metres, the site had previously been the location of a development that stalled and was left dormant.
Under the JDA, CHGP through its indirect wholly-owned subsidiary Chin Hin Property (Melawati) Sdn Bhd (CHPMSB) will step in to bring the land back into active development by delivering 1,449 units of service apartments with an estimated gross development value (GDV) of RM883 mil.
Subject to the fulfilment of conditions precedent and the receipt of regulatory approvals, the first phase is targeted for launch in 2Q 2027 with overall completion slated six to seven years from commencement of development which is expected by 3Q 2033 earliest.
Under the terms of the JDA, CHPMSB will pay a reimbursement sum of RM80.0 mil to EC Properties in exchange for the exclusive development rights.
The payment is structured for capital efficiency through a RM48.0 mil cash component expected to be funded via bank borrowings while another RM32.0 mil is to be satisfied through the issuance of 32 million redeemable preference shares (RPS) in CHPMSB to EC Properties at RM1 each.
As the RPS are issued at the subsidiary level and carry no voting or dividend rights, CHGP has secured a substantial residential pipeline without diluting its listed shares.
‘Well-established residential corridor’
The agreement also sets out a structured pathway for legacy matters associated with the site to be addressed, including the settlement of prior end-purchasers’ claims which EC Properties is contractually responsible to resolve.
This is being part of conditions precedent prior to commencement of development within 12 months alongside completing the principal land acquisition and registering the lands.
As it is, Bandar Ulu Kelang sits within a mature, well-established residential corridor on the fringe of Kuala Lumpur, supported by existing population density and connectivity.
“There is real value in taking a site that has been sitting idle and putting it back to work,” commented CHGP’s group CEO Chang Tze Yoong.
“This is a sizeable parcel in a mature Klang Valley location where people genuinely want to live, of which we’ve the capacity and the discipline to see a development of this scale through.”
On its part, CHGP has structured the arrangement carefully by having secured the development rights with a balanced funding approach while ensuring there is a clear pathway for the legacy matters tied to the site to be worked through under the agreement.
“That matters to us because doing this properly means doing it in a way that holds up,” enthused Chang.
“Our focus is on building a deeper residential pipeline in locations supported by population density, connectivity and practical homebuyer needs. “
Above all else, the project is poised to add meaningful GDV to CHGP’s medium-term portfolio while fitting into its approach of replenishing landbank selectively without stretching the balance sheet.
“From here, we ‘ll continue to manage the risks carefully as the project moves through approvals and planning, and position the development in line with market conditions,” added Chang.
All in all, the transaction is consistent with CHGP’s strategy to selectively replenish its landbank and grow its property development segment. Barring unforeseen circumstances, the board expects the project to contribute positively to the group’s future earnings.
At the close of today’s (June 25) market trading, CHGP was unchanged at RM1.07 with no transaction done, hence giving the counter a market capitalisation of RM1.48 bil. – June 25, 2026
