PETALING JAYA: Iris Corp
Bhd has entered into a joint venture (JV) to develop a township in Papua New Guinea (PNG) for the local government.
The company said in a stock exchange filing that its property development subsidiary, IRIS Land (PNG) Ltd, had signed a memorandum of agreement (MoA) on Sept 10 with Central Provincial Government Of Free Mail Bag, Konedobu NCD, PNG, and Jayacorp Holdings Ltd, its local partner.
The three parties are to form a JV and build a satellite township on some 303.76ha of land in Granville Province.
The JV will be majority-controlled by IRIS Land with a 51% stake, the government with 23% and Jayacorp, 26%.
Iris said it would leverage on its expertise in building housing and commercial buildings using the IRIS-Koto Industrial Building System.
The township will house amenities such as a state-of-the-art secondary school and technical college and 30 houses measuring 100 sq m each for the government.
As part of the deal, Iris will offer educational scholarships to 20 qualified Central Provincial Government students per year for 10 years to pursue tertiary education in a university nominated by IRIS Land.
Under the MoA, IRIS Land will guarantee the funds required for the implementation of the project. It did not disclose the total funds needed.
In turn, the central government will transfer the titles to the development land held under its investment company into the JV company free of all encumbrances and with valid leases for 99 years.
As the joint developer, Jayacorp will facilitate the procurement of all licences, permits, approvals and consents, and undertake all necessary regulatory and administrative work.
“The company, having made its mark in its present housing development project in Gerehu, Port Moresby, using the IRIS-Koto IBS, is positive that it can contribute towards cultivating and ensuring the growth of a productive, healthy and economically sustainable society in PNG in line with the PNG government’s aspiration and at the same time generate a profitable business for the company,” Iris said.
The project costs will be determined after the formal contracts are executed at a later date.
Iris said the successful implementation of the project was expected to contribute positively to the group’s earnings in the future.
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