BOUTIQUE integrated property developer OCR Group Bhd targets to launch its largest-ever property development in Shah Alam that boasts a gross development value (GDV) in excess of RM750.0 million in end-2021.
The group’s 26.9-acre Shah Alam project will consist of 2,892 affordable units along with retail spaces and will be established in phases. The entire project is expected to be completed by 2026.
“This single-largest undertaking denotes the huge potential we see in Shah Alam as it has a unique blend of old-school charm and thriving modernity in commercial, financial and recreational aspects,” commented OCR Group’s managing director Billy Ong Kah Hoe.
“There is still much room for Shah Alam to grow with its already-large population continuing to expand, hence we are confident this project would enjoy a strong take-up.”
Coming under the company’s Essential Living series, the Shah Alam project targets two groups, notably the existing population and new joiners to Shah Alam.
“Coupled with our upcoming RM105.9 mil GDV project at Jalan Alor in Kuala Lumpur City Centre, OCR’s future launches in the next two years are boosted to RM1.6 bil,” noted Ong.
The Urban Living project in Jalan Alor is slated for 2022 with completion due for 2025. The 0.33-acre development comprises a 10-storey small office home office (SOHO) development comprising 120 units of SOHO and eight retail lots.
Furthermore, the site of the Jalan Alor development is within a gazetted transit planning zone. With this, the project would be accorded similar benefits as a transit-oriented development (TOD), hence able to command a higher plot ratio and reduced car park requirements in line with the greater public transport accessibility.
With regard to the Shah Alam and Jalan Alor projects, OCR has proposed to acquire 80% equity interest in Stack Builder Sdn Bhd and 100% in Wonderland Projects Sdn Bhd from its managing director-cum-substantial shareholder who is Ong alongside various other owners for RM62.4 mil.
The consideration will be fully paid via issuance of 328.5 million OCR shares with no direct cash payout by the group. Stack Builder currently owns the land at Shah Alam while Wonderland Projects possesses the Jalan Alor property.
Upon completion of the equity acquisitions, OCR will remain as the controlling developer of the aforementioned developments.
The proposed acquisition of Stack Builder and Wonderland Projects is subject to the approval of relevant authorities and shareholders at an upcoming extraordinary general meeting (EGM) in 4Q 2021.
At the close of today’s trading, OCR was down 0.5 sen or 2.94% to 16.5 sen with 967,300 shares traded, thus valuing the company at RM97 mil. – Aug 2, 2021