Sources told Business Times that under the deal, Malton would upgrade some parts of the 28-year-old complex or demolish some ageing structures for new development. It would then sell back the completed property at higher prices to make a profit.
JCorp, through 27.7 per cent-owned Damansara Realty Bhd, owns nine commercial blocks in Pusat Bandar Damansara, Kuala Lumpur.
JCorp chief executive officer Tan Sri Muhammad Ali Hashim and Malton deputy chairman Guido Paul Philip Joseph Ravelli did not respond to Business Times' e-mails or phone calls for comments.
JCorp chief executive officer Tan Sri Muhammad Ali Hashim and Malton deputy chairman Guido Paul Philip Joseph Ravelli did not respond to Business Times' e-mails or phone calls for comments.
"Malton will pay RM500 million in cash for the property, while the remaining RM200 million will be paid in kind, meaning that once the property is completed, some of it will be handed back to JCorp in the form of commercial or office space," said a source.
The project, which is expected to take five years to complete, will also require Malton to develop a fresh plot of land next to the complex belonging to JCorp.
The source said that JCorp, which owns various properties nationwide, is a land and property owner and property development is not its core business.
JCorp has diversified businesses, including healthcare, plantation and fast-food, through interests in companies such as KPJ Healthcare Bhd, Kulim (M) Bhd and QSR Brands Bhd.
Property developer Malton's experience ranges from building residential houses and condominiums to high-rise office buildings in the Klang Valley.
Pusat Bandar Damansara, or Damansara Town Centre, was built in 1981. It houses some ministries and government departments as well as private corporations.
By Business Times (by Zaidi Isham Ismail)
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