Property developer GSH Corporation is investing RM164.5 million (S$55.2 million) for a 50 per cent stake in a prime 1.4ha plot in Kuala Lumpur's Chinatown precinct of Jalan Petaling.
The company yesterday said it had signed a conditional subscription and shareholders agreement with Malaysian conglomerate Tradewinds Corporation for the stake in Aspirasi Kukuh, a wholly owned Tradewinds subsidiary that owns the plot and will also undertake its development.
The consideration will be paid via a subscription of new shares for about RM50.1 million and a shareholder loan. It will be funded by a combination of the group's internal resources and borrowings.
GSH said the 99-year leasehold site will be developed into a premium condominium of about 1,700 units.
It is about 300m from the M101 Skywheel integrated development, a new icon for the city with its unique ferris wheel perched 220m above ground on the 53rd floor of the building. M101 Skywheel will also boast one of the world's highest shopping malls, and Asia's first Planet Hollywood Hotel.
1,700 Number of units at the premium condominium that will be developed at the 99-year leasehold site, according to GSH.
GSH shares closed flat at 46 cents yesterday.