Varia Bhd has announced a partnership with a Johor-based property developer to jointly develop a medium-cost residential project in Bandar Seri Alam, Johor Bahru, with an estimated gross development value (GDV) of about RM250 million.
In a filing with Bursa Malaysia, the group said its wholly owned subsidiary, Varia Southrise Sdn Bhd, has entered into a collaboration agreement with Seri Alam Properties Sdn Bhd for the development.
Under the agreement, both parties will jointly develop a 43,810 sq m freehold parcel in Mukim Plentong into a stratified medium-cost residential scheme comprising 645 apartment units.
Varia Southrise will hold the exclusive rights to undertake the development, subject to approvals from the relevant authorities.
The company said that while the development order and building plans have already been approved, it is still awaiting the issuance of the advertising permit and developer’s licence. The project is expected to be launched later this year, pending final regulatory approvals.
Funding for the project will primarily be sourced through project financing at the company level, supplemented by initial advances under the collaboration agreement. Any additional funding requirements will be shared equally between both parties.
Varia said the collaboration aligns with its strategy to expand its property development segment through partnerships with established landowners in key growth corridors, while unlocking value from its strategic landbank and delivering sustainable long-term returns.
On the market front, Varia shares closed one sen or 1.1% lower at 87 sen, giving the group a market capitalisation of approximately RM376.3 million.
