KUALA LUMPUR (Dec 9): Construction and property group Gagasan Nadi Cergas Bhd (KL:NADIBHD) plans to build affordable homes worth over RM1 billion within the Kwasa Damansara township.

Gagasan Nadi’s indirect subsidiary, Nadi Emery (KKD2) Sdn Bhd (NESB), has signed a development rights agreement (DRA) with Kwasa Land Sdn Bhd and its unit, Kwasa Development (15) Sdn Bhd (KD15) for the project.

Under the agreement, NESB will pay RM35.6 million to KD15 in exchange for the right to develop 4,183 units of affordable housing on a 34.9-acre parcel of land. "Kwasa Land will act as the master developer for this project," Gagasan Nadi said in a statement.

Gagasan Nadi plans to fund the development via a combination of internal funds and bank borrowings. As of end-September, the group had cash and bank balances totalling RM68.68 million, with RM37.84 million short-term borrowings and RM133.56 million long-term loans.

This marks the group’s second collaboration with Kwasa Land, following an agreement between them for Gagasan Nadi to develop 1,669 affordable housing units on Plot R4-1 in Kwasa Damansara last year.

“The DRA signing marks the continuation of our partnership with Kwasa Land, as we work together to ensure an ample supply of affordable homes in Malaysia, particularly in Selangor, where the population continues to grow rapidly in tandem with the state’s robust economy,” said Gagasan Nadi Cergas managing director Datuk Wan Azwan Wan Kamal.

“Boosted by its strategic location and proximity to the two MRT stations within Kwasa Damansara township and the Damansara–Shah Alam Elevated Expressway (DASH), the project is bound to be well-received by home buyers, much like the enthusiastic response to our previous launch of Idaman Kwasa Damansara on Plot R4-1,” he said.

Wan Azwan said the market value range of these homes will be affordable yet earnings-accretive, supporting the future growth of the group’s rapidly expanding property development segment.

The group is also currently developing about 6,000 Rumah Idaman affordable homes in both Bukit Jelutong and Kwasa Damansara, as well as over 1,000 Idaman Amani affordable housing units in the City of Elmina.

Gagasan Nadi Cergas said it will deliver more than 11,000 affordable homes over the next eight years

Meanwhile, the order book for its construction segment currently stands at RM462 million. Among its recently completed projects include the Sakura Residence apartments in Putrajaya, the mosque at the Merdeka 118 tower in Kuala Lumpur, and the Cardiology Centre at Serdang Hospital.

Shares of Gagasan Nadi Cergas were last traded on Dec 4 at 29.5 sen, valuing the group at RM222.1 million.