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Regal in major land development deal in Bintulu, Sarawak

SINGAPORE-LISTED property developer in East Malaysia, Regal International Group, on Thursday entered into a project management and construction agreement with an independent third party to develop a 21.64-acre (8.76-hectare) piece of land in Bintulu, Sarawak.

The project has an estimated gross development value of over RM100 million (S$32.8 million) over a three to four-year development timeline. Called Kemena Heights, it will comprise residential units - 64 units of four-storey apartments and 32 units of four-storey apartment flats - and retail and commercial units.

Regal's wholly owned subsidiary Harbour Venture will be the project manager and contractor for the land, while the independent third party will be the project developer, said the firm in an announcement.

This new project follows the successful completion of a development agreement for 30 units of three-storey shophouses, also in Bintulu, last year.

Regal executive chairman and chief executive Dominic Su said: "In this cautious economic environment, our philosophy is to develop projects with a quick turnaround."

"Before we entered into this (latest) agreement, we conducted a number of intensive studies of the local market in Bintulu and saw the opportunity to offer products that satisfy current demand swiftly," he added.

The group said it expects a "healthy" take-up rate for the Bintulu project which will contribute positively to its earnings per share and net tangible assets for the year ending December 2016.

Shares of Regal were last traded at 15.9 Singapore cents.