KUALA LUMPUR (June 9): Permaju Industries Bhd’s 70%-owned subsidiary Hardie Development Sdn Bhd has entered into a second supplemental agreement with Mydin Mohamed Holdings Bhd to make changes to the design and layout of the hypermarket it intends to construct in Menggatal, Kota Kinabalu, Sabah.

In a filing with Bursa Malaysia today, Permaju said the parties have agreed to make certain changes to the design and revisions and amendments to the layout drawings and the construction drawings and will apply to the relevant authorities for the approvals.

“The variation was requested by the lessee and the variation is necessary in order to stay viable and competitive in the project based on the current market condition,” said the company.

“The hypermarket will definitely enhance the overall value of Hardie’s on-going and future development project. It will also provide stable recurring revenue and increase income stream to the Permaju group and may also provide capital gains should Hardie wish to dispose of the asset in future,” it said.

Permaju said the financing and construction of the hypermarket will be funded by a combination of internal funds and bank borrowings.

It expects the construction to be completed within 30 months from the date of approval for the commencement of work by the local authorities.

Permaju shares closed down 0.5 sen or 2.7% at 18 sen today, giving it a market capitalisation of RM33.71 million.