SINGAPORE - Mainboard-listed Astaka Holdings subsidiary Astaka Padu has entered into a joint venture to develop a 258.48 acre township close to the Pengerang oil and gas hub in Southern Johor, Malaysia.
Astaka Padu holds a 51 per cent stake in the joint venture, Bukit Pelali Properties, with the remaining 49 per cent stake held by Saling Syabas.
Astaka said the project, which will comprise mostly residential units and commercial shop lots, represents its second most important project after the iconic One Bukit Senyum, which will be new administrative and commercial hub of Johor Bahru.
The Bukit Pelali project will be the closest sizeable township to Pengerang, one of the region's largest hubs for oil and gas, petrochemical, oil storage and trading activities, it noted.
The initiative is in line with the group's strategy to reduce business risks associated with a single development project and diversify the group's current project development portfolio. The Bukit Pelali Project is expected to commence in 2017.
It will be Astaka's second project after its flagship development, One Bukit Senyum, a mixed development with total gross floor area of 6.3 million square feet and estimated gross development value of RM5.4 billion (S$1.8 billion).
It includes a five-star hotel, branded residences, service apartments, a premium shopping mall, Grade A office tower and the new headquarters of Johor Bahru's City Council, Menara MBJB.
It will also feature The Astaka, touted to be Southeast Asia's tallest residential twin towers and set for completion in end 2017.
To date, 71 per cent of The Astaka's residential units have been sold.