Golden Hope Plantations Bhd's property arm, Golden Hope Development Sdn Bhd (GHD), will undertake a RM3 billion development project in Sungai Sedu, Selangor.

The project will be jointly developed by GHD and Syarikat Perumahan Pegawai Kerajaan Sdn. Bhd (SPPK). The two companies yesterday signed a deal to effect the project that will see a comprehensive township erected at Sungai Sedu.

Group chief executive Datuk Abd Wahab Maskan the project will assure GHD profits for 15 years and increase its contribution to the group's profit to 30 per cent within the next two years.

“The property division currently contributes some 20 per cent to the group's profit a year,” he told reporters after the signing of a sale and purchase agreement with SPPK in Kuala Lumpur yesterday.

Golden Hope is selling its 29.95ha land at Sungai Sedu to SPPK for the development of the township. The disposal is expected to contribute RM9.2 million to GHD's profit for the financial years ending June 30 2003 and 2004.

“We have not determined when will the actual project starts.We are still studying the market and demand as we do not want to add to the current overhang problem,” he said.

The acquisition of the 29.95ha land is the first phase of the overall purchase which involved a total of 92.41ha land in Sungai Sedu for RM40 million.

Covering 1,297.65ha of freehold land, the project has been envisaged as an integrated garden district administrative centre.

Abdul Wahab said SPPK will assist GHD to expedite the development maturity of Sungai Sedu main division, which will soon include a new administrative centre for the Kuala Langat district within a 60.75ha site.

“We believe the Sungai Sedu project will receive more than favourable response from its target market and expect it to be a home for 200,000 residents within 20 years,” he added.