Kobay Subsidiary To Build Condominium With GDV Of RM80.4 Million
Date：2015/05/19
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KUALA LUMPUR, 18 May -- Kobay Technology Bhd's wholly-owned unit, Kobay Systems Sdn Bhd, has entered into a joint development agreement with two businessmen to build a condominium with a gross development value of RM80.4 million on a 0.68-hectare land in Mukim Batu here.
In a filing to Bursa Malaysia, Kobay Technology said the land, situated in Segambut with no specific land use category, has a freehold tenureship.
It said with an estimated gross development cost of approximately 40.2 million, the expected profit before tax, after deducting proprietor and arranger's 27 per cent entitlement of RM21.7 million, is approximately RM18.5 million over a period of four years.
Kobay Systems shall be fully responsible for the funding of the project with the initial outlay of RM5.5 million that will be funded by internally generated funds, it said.
Meanwhile, it said the subsequent development cost should be funded by the project itself as the management was highly optimistic that the project would be able to be self-financing.