KUALA LUMPUR (June 9): Varia Bhd (KL:VARIA) said it is partnering with a Johor-based property firm  to develop a medium-cost residential project in Bandar Seri Alam, Johor Bahru.

In a bourse filing, the company said its wholly-owned unit, Varia Southrise Sdn Bhd, has entered into a collaboration agreement with Seri Alam Properties Sdn Bhd

Under the agreement, the parties will jointly develop a 43,810 sq m freehold parcel in Mukim Plentong into a stratified medium-cost residential project comprising 645 apartment units.

The project carries an estimated gross development value of about RM250 million, Varia said.

Varia Southrise will hold the exclusive rights to undertake the development, subject to approvals from the relevant authorities.

While the development order and building plans have been approved, the company is still awaiting the advertising permit and developer’s licence. The project is targeted for launch later this year, subject to final approvals.

Funding will mainly be sourced through project financing at the company level, supplemented by initial advances under the collaboration agreement, Varia said, adding that any additional funding requirements will be shared equally by both parties.

Varia said the collaboration supports its strategy to grow its property development segment through partnerships with established landowners in mature growth corridors, while unlocking value from strategic landbank and delivering long-term sustainable returns.

Shares of Varia settled one sen or 1.1% lower at 87 sen on Tuesday, giving the group a market capitalisation of RM376.3 million.