Encorp Bhd has partnered Sinmah Capital Bhd (SCB) to develop 77.9 acres of its land in Bukit Katil in Malacca into an RM865 million mixed development project, reported The Sun Daily.
Encorp revealed that its indirect fully-owned unit Encorp Bukit Katil Sdn Bhd (EBKSB) has inked a joint venture and shareholders agreement (JVSA) with Sinmah Development JV Sdn Bhd (SDJSB) and Sinmah Development Sdn Bhd (SDSB).
SDJSB is the JV company specifically created to carry out the mixed development project, while SDSB is a fully-owned unit of SCB, which was previously known as Farm’s Best Bhd.
SDSB owns a 70 percent stake in SDJSB, while the remaining 30 percent is held by EBKSB.
Encorp said the synergistic collaboration with SCB will not only allow it to unlock the value of the Bukit Katil land, but will also enable it commence development without incurring significant capital outlay.
It noted that SDJSB will acquire the right to develop the 77.9acre land into a mixed development project comprising commercial and residential units for RM69.7 million.
Occupying 57.9acres, the commercial segment will include a hospital and medical college, while the 20acre residential segment will feature link houses, semi-detached homes and bungalows.
Encrop intends to use the cash proceeds from the sale of development rights to pay Federal Land Development Authority (Felda) for the development rights of the 640.9acre Bukit Katil land.
“The management of Encorp is delighted and excited by the proposed JV as this marks the first project to kick off the development for the 640.9 acres Bukit Katil development,” it said.
“Encorp management is positive the residential project under the JV will be well received when they are launched given the strategic location of Bukit Katil, further boosted by the development of medical college and hospital in the area.”
Barring unforeseen circumstances, the proposed JV is set to be completed by Q4 2017.
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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