Varia Expands Property Development Pipeline Through Putrajaya Joint Venture

KUALA LUMPUR (June 2) — Varia Bhd has taken another step in expanding its property development portfolio through a proposed joint development in Putrajaya, partnering with United Malayan Land Bhd (UMLand) and Canada-based King George Financial Corp (KGFC).

The collaboration involves the development of a mixed-use project on a 6.82-acre freehold parcel located in Precinct 7, Putrajaya. The land is owned by Cahaya Nusantara Sdn Bhd, a special-purpose vehicle held 51% by UMLand and 49% by KGFC (Malaysia) Sdn Bhd.

Under the agreement, Varia will serve as the project developer and will be responsible for undertaking the development works. The company stated that the project aligns with its strategy to strengthen its property development pipeline and enhance its presence in the sector.

Project funding is expected to be sourced through a combination of internally generated funds, proceeds from property sales, and bank borrowings.

In terms of profit-sharing, Varia will be entitled to 84.12% of the net profits generated from unit sales, while Cahaya Nusantara will receive the remaining 15.88%.

Although specific details regarding the development concept, gross development value (GDV), and project components have yet to be announced, the parties will establish a project committee to determine the final scope and implementation plans.

The development is expected to reach completion within four and a half years from the signing of the agreement, with the issuance of the Certificate of Completion and Compliance (CCC) targeted within that timeframe.

The proposed venture highlights Varia's continued efforts to diversify and grow its property development business beyond its traditional construction activities. The partnership also demonstrates confidence in Putrajaya's long-term development potential, particularly within established precincts that continue to attract mixed-use development opportunities.

At the close of trading, Varia's shares were priced at 92 sen, giving the company a market capitalisation of approximately RM397.9 million.