Kerjaya Prospek Group Bhd has entered into a joint venture with Aspen Vision Development Sdn Bhd (AVD), a subsidiary of Singapore-listed Aspen (Group) Holdings Ltd, to develop a 34.84-acre mixed-use project in Prai, Penang. The project sits on land owned by Railway Assets Corp (RAC) and further strengthens Kerjaya Prospek’s presence in northern Malaysia’s property development segment.
The development will be undertaken via a special-purpose vehicle (SPV), Rivanis Ventures Sdn Bhd (RVSB), with Kerjaya Prospek’s wholly-owned subsidiary Futuprop Sdn Bhd holding a 55% stake, while AVD holds the remaining 45%.
RVSB has also signed a development agreement with RAC for the acquisition and development of the land valued at RM156.49 million. Both Kerjaya Prospek and AVD will provide corporate guarantees to RAC, covering payment obligations as well as delivery of the affordable housing component.
The mixed development will include 338 affordable housing units alongside residential properties, serviced apartments, and commercial retail and office space. The project will be developed in phases over an estimated seven-year period.
The gross development value (GDV) and total development cost have not yet been finalised, as they will depend on market conditions, project timing, pricing strategy, and final unit mix.
Located in Kampung Manis, Prai, the site is strategically positioned with access to key areas including Butterworth, Bukit Mertajam, and Penang Island via the Penang Bridge, supporting strong regional connectivity.
The development remains subject to approvals from relevant authorities, including the Transport Ministry and Seberang Perai City Council, as well as vacant possession of the land.
Funding for the project will be structured through a combination of shareholder contributions in proportion to equity stakes and external financing, with the final funding mix still under review.
Kerjaya Prospek noted that the transaction is not expected to have a material impact on earnings for the financial year ending Dec 31, 2026, with completion of the acquisition expected by September, barring any unforeseen circumstances.
Following the announcement, Kerjaya Prospek shares closed at RM2.15, down three sen or 1.38%, giving the group a market valuation of approximately RM2.7 billion. The stock has declined 21% year-to-date.
Malaysia