KUALA LUMPUR (Jan 15): Sanichi Technology Bhd is teaming up with MNC Wireless Bhd to put up 120 units of luxury serviced apartment at Sanichi's Marina Point development project in Klebang, Melaka, for online leasing or short-term luxury rental.

Its subsidiary Sanichi Property Sdn Bhd (SPSB) inked a memorandum of understanding (MoU) with MNC today to formalise the strategic alliance between the parties.

Under the MoU, MNC will be responsible for creating and operating an online community marketplace for the public to book luxury homestays at those 120 units in Marina Point.

The bookings can be done via online or mobile phone application by individuals and businesses.

"MNC is expected to commence the business no later than in the second quarter of 2020," Sanichi said in a filing with Bursa Malaysia today.

On top of that, MNC will pay a quarterly lease to SPSB, the rate of which is yet to be determined.

The project is expected to remain in full force for a three-year period, with an option to be renewed for another seven years, Sanichi said.

The MoU is not expected to have any effects on either Sanichi's or MNC's earnings and net assets per share, gearing, or share capital for the financial year ending Dec 31, 2018.

Shares in Sanichi closed down 0.5 sen or 3.45% at 14 sen today, giving the precision plastic parts manufacturer a market capitalisation of RM43.7 million.

Meanwhile, shares in digital technology solutions provider MNC closed unchanged at 9.5 sen per share, giving the group a market capitalisation of RM45.45 million.