Encorp in RM235mil JV development project in Perth

KUALA LUMPUR: Encorp Bhd, a 71%-owned subsidiary of Felda Investment Corp, plans to undertake a joint-venture (JV) commercial and residential development project in Perth, Australia, with an estimated gross development value A$75.41mil (RM235.95mil).

In a filing with Bursa Malaysia, the property development and construction firm said its unit Encorp Development Pty Ltd (EDPL) had signed a development and management agreement with Tew Investments Pty Ltd (TIPL) to form a JV to develop EDPL’s 11,000 sq m freehold land in Tea Tree Cockburn Central.

Encorp said EDPL and TIPL aimed to develop the land into a multi-level mixed-use commercial and residential development project comprising about 165 apartments.

It said the net profit from the project would be divided in proportion to each party’s equity, with the developer TIPL’s equity not exceeding 70% and EDPL’s equity not being less than 30%.

TIPL will, among others, also pay EDPL a land value of A$3.6mil (RM11.27mil) and a minimum return of A$2.4mil (RM7.52mil) proportionately in accordance to the stages proportional to the entire development from the proceeds of sales.

Encorp said TIPL was required to complete the project’s construction within 36 months from the due date or the extended due date.

EDPL had bought the land for A$6mil (RM18.8mil) in 2012 (prior to Encorp becoming Felda Investment Corp’s subsidiary) and in its announcement to the stock exchange then, Encorp said it was planning to develop five blocks with 190 residential apartments.

Encorp closed unchanged at 78 sen on Friday.