“MGB Bhd revives RM107 million Cameron Highlands serviced apartment project with RM7.23 mil settlement to joint venture partner. Project to launch in Q3 2025.“
Kuala Lumpur, 22th Apr 2025, 10.50am – MGB Bhd is moving forward with its long-delayed serviced apartment project in Cameron Highlands, after proposing a RM7.23 million settlement with its joint venture partner, Aset AZG Sdn Bhd (AASB).
The project, which has been on hold since the joint venture was first inked in August 2019, is expected to kick off in Q3 2025.
Land Settlement Paves Way for Development
In a filing with Bursa Malaysia on Tuesday, MGB said its wholly owned subsidiary Sinaran Kencana Sdn Bhd (SKSB) signed a settlement agreement to resolve outstanding obligations related to the 1.884-acre leasehold land in Cameron Highlands.
Under the deal, SKSB will pay AASB a total of RM7.23 million, comprising:
- RM1.59 million via property units
- RM5.5 million in cash
The payment covers the remaining land cost and interest accrued due to the six-year delay in development. AASB had previously paid RM11.45 million for the land.
Project Details and Timeline
The settlement clears the path for approvals and launch of the project, with construction scheduled to begin in the third quarter of 2025. The development is projected to span over four years.
Initially estimated to have a gross development value (GDV) of RM107 million, the project will consist of a serviced apartment block, aiming to tap into growing demand for lifestyle and vacation homes in the highlands.
Despite the initial joint venture being signed nearly six years ago, Sinaran Kencana had yet to commence any works on the land until now.
Market Outlook
MGB shares closed unchanged at 61 sen on Tuesday, valuing the company at RM360.91 million. The stock is down 13.7% year-to-date.
The revival of the Cameron Highlands project may offer fresh momentum for MGB, as developers increasingly explore second-home destinations and tourism-centric locations amid renewed interest in domestic property investment.
