SHAH ALAM, Aug 14 — Hextar Global Bhd through its 70 per cent indirectly owned subsidiary Hextar Landmark Sdn Bhd has partnered with the Selangor State Development Corporation (PKNS) to develop an integrated mixed-use development with an estimated gross development value (GDV) of RM3.8 billion in Siera Alam, Shah Alam.
Hextar Global's property development division executive director Datuk Edmund Kong Woon Jin said Hextar Landmark had entered into a joint venture agreement with Kotaputeri Development Sdn Bhd (KDSB), a subsidiary of PKNS, to jointly develop approximately 240.388 acres through the joint venture company Hextar Siera Sdn Bhd.
Hextar Landmark will hold a 70 per cent equity stake in Hextar Siera, while KDSB will hold the remaining 30 per cent.
The project targets middle- to upper-middle-income upgraders seeking better-designed homes, greener surroundings, enhanced security, and improved lifestyle amenities.
“The development, which marks Hextar's maiden venture into property development, is expected to be rolled out in several phases over an estimated 10 years comprising terrace houses, semi-detached villas, villas, and commercial components, complemented by selected high-rise residential, commercial, and lifestyle components,” he said.
Kong was speaking at the joint venture agreement signing ceremony between KDSB and Hextar Landmark at the Shah Alam Innovation and Technology Centre today.
The development will be guided by a 'Park First, Home Second' philosophy, with plans focusing on a central park and lake as the social heart of the community, alongside pedestrian-friendly streets and landscaped surroundings.
Meanwhile, he said Hextar Siera has entered into a sale and purchase agreement with PKNS to acquire the development land for RM270 million.
The acquisition will be funded through a combination of bank borrowings and equity, while the purchase consideration is supported by an independent valuation undertaken by Laurelcap Sdn Bhd.
Kong added that, as the joint venture is expected to contribute more than 25 per cent of the group’s net profit in the future, it will seek shareholders’ approval to diversify into property development, construction, property investment and management.
Meanwhile, PKNS group chief executive officer Dato' Mahmud Abbas said the partnership allows the value of the land to be optimised to generate long-term returns while supporting Selangor's development agenda through urban regeneration and surrounding growth.
He emphasised that the strategic cooperation with the Hextar Group is built on mutual empathy, respect, and understanding between both organisations in safeguarding the state's interests and driving Selangor's sustainable township development agenda.
The selection of development partners was based not only on business capabilities, but also on their development philosophy and ability to create long-term value for the community.
Mahmud said the approach aligned with the development concept proposed by Hextar for the project, including an emphasis on green areas, parks, lakes, and a comfortable environment for the community.
PKNS also emphasises maintaining long-term relationships with its joint-venture partners to ensure the state's interests are protected throughout project implementation.
“PKNS holds substantial landbank but lacks the capacity to develop all parcels independently, necessitating strategic partners who bring expertise and aligned development philosophies. Through this collaboration, PKNS can leverage our partner's expertise to maximise land value,” he said.
