KUALA LUMPUR (April 18): Practice Note 17 (PN17) company Malaysia Pacific Corp Bhd (MPCorp) has teamed up with privately-held company Chesland Sdn Bhd to jointly develop a 5.7ha piece of land in Johor Baru.
Last Friday (April 15), MPCorp said its indirect wholly-owned subsidiary Taman Bandar Baru Masai Sdn Bhd (TBBM) has signed a joint venture (JV) agreement with Chesland to undertake the proposed development. However, no details on what the proposed development would entail were mentioned except that TBBM will apply to convert the land from agriculture to commercial.
Chesland will hold a 85% stake in the JV, while TBBM is to hold the remaining 15%.
In an updated announcement on Monday (April 18), MPCorp said apart from the project profit, TBBM will also be entitled to payment of the owner’s entitlement sum where Chesland will pay TBBM RM12.18 million or RM27 per sq ft on the net land area of 10.36 acres.
It added that under the JV, Chesland will commence construction of the development within six months from obtaining the building plan approval granted by the appropriate authorities in respect of the development. The development is expected to be completed within 36 months from the date Chesland obtained the building plan approval.
Previously, MPCorp said the agreement will provide opportunities for the property firm to strengthen its financial earnings via the development of the project.
"The JV agreement is not expected to have any material impact on the company’s earnings per share, net assets and gearing for the current financial year ending June 30, 2022. However, it is expected to contribute positively to the future earnings of the company," it added.
MPCorp, which slipped into PN17 status in December 2014 after its external auditors could not formed an opinion on the former's audited accounts for the financial year ended June 30, 2014, has up to June 30 this year to submit its regularisation plan to Bursa Securities.
MPCorp shares closed unchanged at 7.5 sen on Monday, bringing a market capitalisation of RM20.23 million.