Frasers Property, Tan & Tan to develop PJ Quarter mixed-use project in Section 13
Frasers Property Ltd and Tan & Tan Developments Bhd plan to jointly develop PJ Quarter, a 5.15-hectare mixed-use project in Section 13, Petaling Jaya. The partnership is linked to Tan & Tan's proposed acquisition of a 50% interest in Vacaron Company Sdn Bhd, which owns the site. The first phase will
PETALING JAYA (Aug 21): Frasers Property Ltd and Tan & Tan Developments Bhd plan to jointly develop PJ Quarter, a 5.15-hectare (12.7-acre) mixed-use project in Section 13 here.
The partnership is linked to Tan & Tan's proposed acquisition of Fraser & Neave Holdings Bhd's (F&N) 50% equity interest in Vacaron Company Sdn Bhd, which owns the development site. Frasers Property Holdings (Malaysia) Pte Ltd (FPH) holds the remaining 50% interest in Vacaron. In a Bursa Malaysia filing on Friday (Aug 21), F&N said it had entered into a share sale and purchase agreement (SPA) with Tan & Tan on Aug 21 for the proposed disposal, following the fulfilment or waiver of pre-SPA completion items on the same day.
The purchase consideration will be determined based on 50% of Vacaron's adjusted pro forma net asset value as at the fulfilment date. In calculating that amount, the parties agreed to use a revised land value of RM360 million. The interim purchase consideration will be determined upon receipt of Vacaron's pro forma management accounts within five business days of the fulfilment date. The consideration may subsequently be adjusted following completion of an audit.
Under the SPA, Tan & Tan will pay 75% of the interim purchase consideration in cash on completion. The remaining 25% of the purchase consideration will be payable on the first anniversary of Vacaron obtaining the "Acceptable KM". Completion will take place on the seventh business day after Tan & Tan receives Vacaron's adjusted pro forma management accounts as at the fulfilment date. Upon completion, Tan & Tan and FPH will each hold a 50% stake in Vacaron.
In a separate joint press release on Friday, Frasers Property and Tan & Tan said PJ Quarter will be developed in two phases, with the first phase comprising residential developments, retail space and a park. The residential component, intended for families and working professionals, is expected to be launched for sale in 2027. The retail component is planned as a low-rise, open-air development integrated with the park and community and public spaces. No gross development value, development cost, unit count, unit sizes, pricing or overall project completion timeline was disclosed in the press release.
Frasers Property Singapore CEO Soon Su Lin said PJ Quarter marked the group's first collaboration with Tan & Tan and formed part of its partnership-led strategy to grow its development portfolio. Tan & Tan CEO Tan Yee Seng said the project would benefit from Section 13 rejuvenation efforts, including green connectors and pedestrian-friendly infrastructure. According to the press release, the site fronts the intersection of Jalan Kemajuan and Jalan Profesor Diraja Ungku Aziz, with access via the Federal Highway and SPRINT Expressway. The companies also cited its proximity to the Phileo Damansara MRT station and Asia Jaya LRT station, as well as the planned UM station on the MRT3 Circle Line.
