The deal involves all 276 units of strata-titled residential apartments to be erected for phase 3 of its “Airtrollis” project. Regal International Group (RIG), through its wholly owned subsidiary Bellanova Sdn Bhd, has signed a conditional offtake agreement with Myangkasa Bina Sdn Bhd (ANGKASA), a subsidiary of Angkatan Koperasi Kebangsaan Malaysia Berhad.
ANGKASA is obliged to market and sell all the apartments, or purchase all unsold units upon project completion, for a total value of approximately RM 90 million.
RIG said this project is expected to contribute positively to the earnings per share and the net tangible assets of the Group for the financial year ending 31 Dec 2017.
RIG said the security and assurance provided by the offtake agreement further lowers financial and developmental risks for the Group.
It is on the constant lookout to enhance its principal business by adding value to its development projects, innovating new application of real estate and emerging as a builder developer that integrates real estate products into complementary business ventures of sustainable growth.
Source: NRA Capital
Commenting on the offtake agreement, Mr Nicholas Wong, Executive Director of RIG, said, “This milestone partnership with ANGKASA affirms our robust track record, experience and expertise in designing and building quality homes. Our property sales momentum continues to gather strength, driven by our reputation as a quality developer, our resilience, adaptiveness and strong market network.
"It is also an acknowledgement by an industry leader of the potential of Airtrollis. As the surrounding area of Nilai develops, we see Airtrollis as a vibrant development well-placed to leverage on local demand and upcoming growth areas.”
Slated to be completed in three phases, Airtrollis, named to reflect to the idea of “Airport Transit Metropolis”, is strategically located in Nilai, Negeri Sembilan, a part of the greater Kuala Lumpur region.
Located a half hour drive from Kuala Lumpur International Airport and Low Cost Carrier Terminal, the development brings greater connectivity to its residents with its proximity to an integrated transport system comprising the North-South Highway, the Keretapi Tanah Melayu railway and the Kuala Lumpur-Singapore High Speed Rail, boosting tourism and economic opportunities.
Leveraging on its easy access to the greater Kuala Lumpur region including upcoming cities like Bandar Enstek, Bandar Sri Sendayan, Seremban 2 and Labu Vision Valley, Airtrollis is also made a prime location for commuters.
When fully completed, Airtrollis will house 1,024 residential units spanning 11 blocks of 10-storey apartments. There will also be a 2-storey mini mall, as well as 32 strata-titled commercial units.
♦ ANGKASA to offtake all 276 residential apartments in phase 3 of Aitrollis project
♦ Total value: RM 90 million. Average apartment value: about RM326,100.
♦ Phase 3: Starts 2017, completes 2020.
Phase 3 of Airtrollis, comprising residential and commercial units, will commence construction in 2017 and is estimated to be completed in 2020.
With over 12,000 co-operatives and 7.5 million co-operative members under the stewardship of ANGKASA, ANGKASA is an apex co-operative recognized by the government to represent the Malaysia Co-operative Movement nationally and internationally.
It implements co-operative transformation programs through its participation in high value economy projects in key economic sectors such as property development.
“By collaborating with government agencies and private companies, we are implementing cooperative movement to help our members to own houses. Affordable housing is needed in large numbers because many co-operative members do not own houses”, remarked Dato’ Abdul Fattah Abdullah, President of ANGKASA.