KUALA LUMPUR: Star Publications (Malaysia) Bhd has teamed up with JAKS Resources Bhd to carry out a mixed residential and commercial development on the former’s piece of land with a gross development value (GDV) of about RM370 million.

The leasehold land, measuring 24,568 sq m, is located in Section 13, Petaling Jaya. The lease tenure of the land expires on Jan 7, 2062.

The proposed development comprises two office blocks, a commercial-cum-educational block of 20 storeys and a residential block of 15 storeys. Currently, the land has several blocks of warehouses that are occupied by Utar Education Foundation but will be vacated by year-end.

The development will be undertaken by JAKS Island Circle Sdn Bhd, a 51% subsidiary of JAKS. The remaining 49% is held by Island Circle Development (M) Sdn Bhd.

Under the agreement between Star and JAKS Island Circle, Star will be entitled to 30% of the GDV or RM111 million, whichever is higher based on the plot ratio of 1:3.5.

The cost of development, estimated at RM280 million, will be borne by JAKS Island Circle.

Star said the proposed development was to facilitate future expansion of the group. Star’s entitlement will be used to house the publishing group’s three radio stations, which are currently housed in rented premises, and its multimedia division. The project is expected to be completed within 60 months.

In a separate statement, JAKS said it was still in the stage of finalising terms for the Paya Peda Dam project. The comment was in response to a report in The Edge that a consortium led by JAKS was close to securing the construction job for the dam.