Varia to Lead KL Commercial Development on Citaglobal Land Under New JV Deal

KUALA LUMPUR (Nov 25) — Varia Bhd (KL:VARIA) is set to spearhead a new commercial development in Kuala Lumpur, following a joint-venture agreement with Citaglobal Bhd’s (KL:CITAGLB) property arm that grants Varia full entitlement to all development profits.

In its filing on Monday, Varia said the project will be undertaken through its wholly owned subsidiary Varia Crest Sdn Bhd (VC), in collaboration with Citaglobal Property Development Sdn Bhd (CPD). The development will occupy a 6,410 sq m leasehold parcel in Mukim Bandar Kuala Lumpur, which CPD expects to register under its name once the title perfection process is completed.

Varia Granted Full Development Rights

Under the agreement, VC has exclusive rights to plan and develop the site, which will feature a combination of office and commercial spaces, strengthening the supply of commercial property in KL amid increasing urban redevelopment activity.

In return for contributing the land, CPD will receive a mix of cash and in-kind property entitlements, with exact unit specifications to be determined during the detailed design phase.

Crucially, Varia will retain 100% of the project’s profit, with CPD required to support VC in ensuring profitability does not fall below the agreed projections.

JV Conditions and Funding Structure

The partnership is subject to several conditions precedent to be met within four weeks, including Varia providing a corporate guarantee in favour of CPD.

The project is expected to be funded through:

• Internal cash reserves

• Proceeds from property sales

• Bank borrowings

Construction is slated for completion within 36 months from building plan approval.

Market Context

The JV comes at a time when demand for well-located commercial projects remains steady, with spillover interest from thriving zones such as:

• office space in Bukit Jalil, driven by transit connectivity

• factory and logistics demand in Puchong

• industrial land in Selangor sought by expanding SMEs and data-centre-linked operators

• industrial property in the Subang area, benefitting from strong accessibility and aerospace clustering

Projects within central Kuala Lumpur continue to attract investor attention, supported by proximity to transportation networks, business hubs and a growing urban population.