Metronic to spend RM75 mil on mixed development project

KUALA LUMPUR (March 30): Metronic Global Bhd expects to spend RM75 million to develop a residential-cum-commercial project on the four adjacent plots of land in Cheras that it is acquiring.

“The expected commencement date is two years from the sales and purchase agreement date or when market conditions are better, and the expected completion date of development is three years from the commencement of construction of each phase of the project,” Metronic said in a reply to queries from Bursa Malaysia on the acquisition.

On March 28, Metronic announced that it is acquiring the four leasehold plots — measuring a total of 2,262.77 square metres and located near Cheras Business Centre, Pantai Cheras Medical Centre and Leisure Mall Shopping Complex — for RM7.8 million.  

The group plans to build an 18-storey service apartment with 88 units of service apartments and 13 units of shop lots on the land.

“The land is currently vacant and fenced-up,” the company said, yesterday, adding that the project is expected to generate some RM5 million profit.

Metronic added that Tenaga Nasional Bhd has issued a letter of no objection for the proposed development while the plans for submission to Kuala Lumpur City Hall are currently on hold due to poor market conditions.

Metronic’s share price eased 6.7% to seven sen yesterday, for a market capitalisation of RM53.09 million. — theedgemarkets.com

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