KUALA LUMPUR (May 26): Bina Puri Holdings Bhd has teamed up with Malaysia Pacific Corp Bhd (MPCorp) to jointly develop residential houses with an estimated gross development value of RM204 million on 24.41 acres of land in Taman Nusa Damai, Johor Baru.

In a filing with Bursa Malaysia today, Bina Puri (fundamental: 0.15; valuation: 2) said its wholly-owned subsidiary Bina Puri Properties Sdn Bhd today signed a joint development agreement (JDA) with MPCorp's wholly-owned unit LakeHill Resort Development Sdn Bhd, which is the landowner, for the proposed project.

"Based on the preliminary planning stage, the estimated GDV is approximately RM204 million. The estimated GDV is subject to changes and the company is unable to disclose specific details of the project as the project’s layout/building plan is still pending finalisation," said Bina Puri.

Bina Puri added that a valuation report by independent valuer Hakimi & Associates Sdn Bhd on March 27, 2013 had valued the land at an average RM19 per sq ft.

Under the joint venture (JV), LakeHill Resort Development will be entitled to payment of the land cost atRM21.27 million or RM20 per sq ft and 20% of the project profit.

"Any units unsold as at the completion date shall be distributed to the JV parties in the agreed proportion," said Bina Puri, adding that the estimated time frame for the project’s completion is six years from when the JDA turns unconditional, or the date the certificate of completion and compliance for the units are issued, whichever is later.

As at 12.30pm, Bina Puri shares were trading one sen or 1.87% higher at 54.5 sen, with 79,000 shares done.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)