SINGAPORE (Nov 28): Astaka Holdings on Monday announced it has signed a RM308.0 million (S$98.4 million) sale and purchase agreement with Johor Bahru’s City Council, Majlis Bandaraya Johor Bahru (MBJB).

Under the agreement, Astaka’s 99.99%-owned subsidiary Astaka Padu will construct, develop and sell to MBJB a 15-storey Grade A office tower, Menara MBJB.

According to a media release on Monday, Astaka Padu and MBJB also intend to enter into a supplemental agreement with a contract value of RM35.0 million (S$11.2 million) for the interior design of the tower, subject to the consent of both parties regarding the price, design and other related matters.

Approximately 800 MBJB staff will relocate to the new Menara MBJB, which has been scheduled for completion by end-2019.

With a gross floor area of approximately 445,848 sq ft, Menara MBJB will be located within Astaka’s One Bukit Senyum.

Targeted for completion in 2021, One Bukit Senyum is an upcoming administrative and commercial hub that will serve as Johor Bahru’s central business district.

“A major transformation is underway to rejuvenate Johor Bahru. This will potentially attract a lot of new investments to Johor’s capital city, create jobs and encourage more people to live and work here,” says Johor Bahru’s Mayor, Tuan Haji A. Rahim Nin.

“MBJB’s relocation is part of this transformation and we are very much looking forward to our new premises at Menara MBJB,” he adds.

“We are honoured to play a role in Johor’s transformation into a metropolis of the region,” says Astaka’s CEO Dato’ Zamani bin Kasim.

Share of Astaka Holdings closed flat at 21 cents on Monday.