KUALA LUMPUR: Iris Corp Bhd plans to tie up with a China-based property developer to undertake its 1Malaysia Civil Servants Housing (PPA1M) project in Putrajaya.

The company entered into a memorandum of understanding with Qingjian International Group Co Ltd (QIGC) to set up a special purpose vehicle (SPV).

“Iris and QIGC have agreed to discuss in good faith and mutually agree upon the terms and conditions to incorporate the SPV,” it said in filing with Bursa Malaysia yesterday. “The parties have agreed to define their roles, shares and interests in relation to the SPV and the project.”

Iris on Dec 1 last year announced it had been awarded the contract to undertake the proposed development of PPA1M and a mixed development comprising commercial and residential buildings at Precinct 19, Putrajaya on a 16.2-acre (6.56ha) land.

The company, which ventured into property development early last year, said the project involved the construction of 1,928 units of residential houses under PPA1M, with 508 residential houses and 22 units of commercial buildings for open sale.

The development is expected to be completed in 2½ years, and will be funded internally and with bank borrowings.

Iris shares gained 0.5 sen or 3.12% yesterday to close at 16.5 sen, valuing the company at RM370.79 million.