KUALA LUMPUR (Nov 7): A joint venture (JV) between UDA Holdings Bhd and Penang Development Corp (PDC) has entered into a JV with Q Islands Development Sdn Bhd (QID), a subsidiary of Ideal Property Group, to redevelop Jerejak Rainforest Resort and Spa along with 80 acres of land.

UDA and PDC own 51% and 49% stakes respectively in the JV called Tropical Island Resort Sdn Bhd (TIRSB), according to a statement released by UDA today.

TIRSB had appointed Bestari Hospitality Management to operate the resort since 2004.

According to UDA, construction for the redevelopment is expected to commence in the fourth quarter of 2017 and slated to be completed within eight to 10 years.

TIRSB believes QID will be able to re-brand the operations at Jerejak Rainforest Resort and turn the loss-making property back to profitability, it added.

According to UDA, as at April 30, 2016, TIRSB has registered an accumulated heavy loss since the commencement of Jerejak Rainforest Resort's operations back in 2004. However, it did not provide specific figures.

"JRRS (Jerejak Rainforest Resort) has been closed since May this year due to continuous operating losses," said UDA.

The redevelopment master plan, which has been approved by the Penang state government, will comprise a bridge that will link Pulau Jerejak to the main island, 1,200 units of residential development, a marina, four- and five-star hotels, a theme park, a cycling track and further infrastructure.

UDA said that upon completion of a novation agreement, it will have 100% control over TIRSB to ensure the successful redevelopment of Jerejak Rainforest Resort to become a tourist destination, which will also entail other real estate activity.

Consequently, it said the operation of Jerejak Rainforest Resort will be handed over to QID within six months after the terms and conditions of the agreement are formalised.