KUALA LUMPUR: Ho Hup Construction Co. Bhd's subsidiary is teaming up with Malton Bhd's unit to develop a piece of freehold land, measuring 243,000 sq metres (approximately 60 acres) into mixed commercial and residential development.

Under the agreement, Ho Hup said on Wednesday, March 17 the project would comprise of shopping complex, shop offices, office tower, service apartments and hotel. BJD would be entitled to a minimum of RM265 million from the joint development.

The joint development agreement (JDA) is between Ho Hup's Bukit Jalil Development Sdn. Bhd (BJD) and Malton's Pioneer Haven Sdn Bhd,

"Given that BJD is facing financial constraint and inability to secure the financing to proceed for the development, hence, the JDA will allow Ho Hup, through BJD, to generate revenue and profits without having to fund the development.

"In addition, in the absence of any refinancing options, the entry into the JDA presents a viable alternative to restructure the amount owing to the existing charge and avoid foreclosure of the land," it said.