PETALING JAYA – Chin Hin Group Property Bhd (CHGP) has strengthened its development pipeline through a new joint development agreement (JDA) to undertake a high-rise residential project in Melawati, Selangor, with an estimated gross development value (GDV) of approximately RM883 million.
The agreement was signed between CHGP’s wholly-owned subsidiary, Chin Hin Property (Melawati) Sdn Bhd (CHPMSB), and EC Properties (M) Sdn Bhd (ECPMSB) to jointly develop a serviced apartment project comprising 1,449 units on two freehold land parcels located in Bandar Ulu Kelang, Gombak.
The site, measuring approximately 27,235 square metres, currently contains the partially completed MM Residensi project, an abandoned development that is estimated to be around 20% completed.
Under the terms of the agreement, CHPMSB will pay a reimbursement sum of RM80 million to ECPMSB, representing costs associated with the acquisition of the land and related expenses. The payment will be satisfied through a combination of RM32 million worth of redeemable preference shares (RPS) and RM48 million in cash, which is expected to be financed through bank borrowings.
In return, CHPMSB will obtain exclusive rights to develop and complete the project, including authority to demolish existing structures, secure approvals, appoint consultants and contractors, and market and sell the development units.
The project is expected to be launched in phases, with the first phase targeted for the second quarter of 2027, subject to obtaining the necessary regulatory approvals.
One of the most significant lessons from this transaction is CHGP’s continued commitment to expanding its property development landbank through strategic acquisitions and partnerships rather than relying solely on greenfield land purchases.
By acquiring development rights over a strategically located site in Melawati, the group gains access to a mature residential market within the Klang Valley without undertaking a direct land acquisition of equivalent scale.
The project also demonstrates how developers can unlock value from underutilised or abandoned sites. Instead of reviving the previous MM Residensi scheme, CHGP has emphasised that this will be a completely new development, allowing the company to redesign the project according to current market demand, planning requirements and product positioning.
Melawati and the surrounding Bandar Ulu Kelang area continue to benefit from strong residential demand due to their established infrastructure, accessibility and proximity to Kuala Lumpur city centre.
The proposed 1,449-unit serviced apartment development reflects growing demand for higher-density residential products in well-connected urban locations where land supply is increasingly limited.
With an estimated GDV of RM883 million against a gross development cost (GDC) of RM725 million, the project also provides CHGP with an opportunity to generate meaningful future revenue and earnings over the project's development cycle.
The development is expected to contribute positively to CHGP’s earnings over the coming years and further strengthens the group’s development pipeline.
Importantly, the project is expected to be completed by the third quarter of 2033, providing the company with a long-term source of revenue recognition and earnings visibility.
The transaction aligns with CHGP’s broader strategy of expanding its property development business while maintaining a balanced portfolio of ongoing and future projects.
Despite the attractive potential, the project remains subject to several key conditions before development can proceed.
These include the completion of EC Properties’ acquisition of the land, planning and development approvals from relevant authorities, court approvals relating to the settlement and restructuring of claims involving purchasers from the abandoned project, as well as financing arrangements required by CHPMSB.
As with many redevelopment projects involving previously abandoned sites, regulatory and legal processes may affect timelines.
However, CHGP has stated that the proposed joint development is not expected to have any material impact on its earnings per share, net assets per share or gearing for the financial year ending Dec 31, 2026.
The Melawati project highlights CHGP’s proactive approach to expanding its property portfolio through value-accretive opportunities within established urban markets.
By securing exclusive development rights to a large-scale residential project in a mature Klang Valley location, the group is positioning itself to benefit from long-term housing demand while adding a substantial RM883 million GDV project to its future earnings pipeline.
Overall, the transaction reflects a strategic move to grow the company’s landbank, diversify future revenue streams and create long-term shareholder value through a carefully structured redevelopment opportunity.
Malaysia